Survey says companies are cutting pay

titanpayrollThis may not be the year to ask for a raise.

More than 62 percent of companies in Richmond have reduced staff costs in response to the economic downturn, according to a recent survey.

Seventy-three percent are considering cutting the amount they spend on staff by reducing positions, salaries or benefits, according to a survey conducted by Titan Group, a local HR consultancy, to which 217 companies in Central Virginia responded. Lee Weisiger, managing principal for the company, said the results backed up what they have been hearing.

“The most frequently reported method was staff reductions,” Weisiger said. “It’s disheartening but not a surprise.”

Staff reductions include firing workers or eliminating open positions. Twenty-seven percent of respondents reported that they have reduced staff, and 23 percent said they are considering it.

According to the survey, 5 percent of companies have cut pay, 7 percent have reduced benefits and 22 percent have frozen pay.

“I think companies that are not in dire straits are looking at a staged approach, to first slow down their costs and freeze them and eliminate any open positions,” Weisiger said.

One approach has been to reduce salary budgets and pay increases.

About 54 percent of companies decreased the money they set aside for pay raises. Forty-three percent made no changes, and less than 4 percent increased their salary budget.

Weisiger said a fairly high percentage of companies are increasing salaries.

“That surprised me,” Weisiger said, “that a higher percentage of companies are not reporting a decrease in their salary budget.”

For those companies who planned to increase some salaries this year, the average raise was 3 percent. About one-third of the companies reported they were not increasing salaries this year.

Al Harris is a BizSense reporter. He bucked the trend by getting a raise. Please send story tips to [email protected]

titanpayrollThis may not be the year to ask for a raise.

More than 62 percent of companies in Richmond have reduced staff costs in response to the economic downturn, according to a recent survey.

Seventy-three percent are considering cutting the amount they spend on staff by reducing positions, salaries or benefits, according to a survey conducted by Titan Group, a local HR consultancy, to which 217 companies in Central Virginia responded. Lee Weisiger, managing principal for the company, said the results backed up what they have been hearing.

“The most frequently reported method was staff reductions,” Weisiger said. “It’s disheartening but not a surprise.”

Staff reductions include firing workers or eliminating open positions. Twenty-seven percent of respondents reported that they have reduced staff, and 23 percent said they are considering it.

According to the survey, 5 percent of companies have cut pay, 7 percent have reduced benefits and 22 percent have frozen pay.

“I think companies that are not in dire straits are looking at a staged approach, to first slow down their costs and freeze them and eliminate any open positions,” Weisiger said.

One approach has been to reduce salary budgets and pay increases.

About 54 percent of companies decreased the money they set aside for pay raises. Forty-three percent made no changes, and less than 4 percent increased their salary budget.

Weisiger said a fairly high percentage of companies are increasing salaries.

“That surprised me,” Weisiger said, “that a higher percentage of companies are not reporting a decrease in their salary budget.”

For those companies who planned to increase some salaries this year, the average raise was 3 percent. About one-third of the companies reported they were not increasing salaries this year.

Al Harris is a BizSense reporter. He bucked the trend by getting a raise. Please send story tips to [email protected]

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