NEW YORK, Nov. 24 (UPI) -- Surveys of U.S. businesses show that all manner of pay increases are expected to decrease in the next 12 months.
In October, New York human resources firm Mercer found that 40 percent of 1,000 middle- to large-sized companies indicated they expected to reduce the portion of their budgets set aside for raises in 2009, USA Today reported Monday.
A separate survey by Battalia Winston found 6 percent of the businesses they surveyed indicated bonus pay would increase this year, while 62 percent indicated they would stay the same or decrease.
In addition, fewer companies are paying for holiday parties this year and 25 percent of the 248 companies surveyed by Watson Wyatt indicated they would impose a hiring freeze in the next 12 months, the newspaper said.
An additional 25 percent indicated they would raise the amount employees need to contribute to healthcare plans.
"I think we're going to see a lot more of those reductions," Laura Sejen at Watson Wyatt told USA Today. "Companies are definitely taking a look at a full array of programs to find ways they can cut costs. Pay and benefits are big tickets as costs to employers," she said.
