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consulting firm . The survey, which will be published latefrthis year, shows U.S. employers plan to give workerds merit increases that willaveragwe 3.5 percent in 2009. That's the same averages percentage increase given in 2008 and just slightlty lower thanthe 3.6 percent average increase in 2007. Companieas also plan to award bigger raise sto better-performing employees. Employees whose performancd ratings exceed expectations will receive an average meriy increaseof 4.2 percent, while those who far exceed expectations will receive an average 6 perceng increase, the survey shows.
"Thd economy is no doubt takinf its tollon workers, but theit 2009 merit increases appear safe -- at leasy for now," said Laur a Sejen, global director of strategicc rewards consulting at Watson Wyatt. "Employeed will view holding merit increase budgets steady as a positive sign that will help them offse t inflation and higher energy andfood costs." The surveyt also found that roughlu 33 percent of companies have not made any workforcr contingency plans should the economy continues its slowdown. For the roughly 66 percenf of U.S.
employers who do have contingency planning activity in the most common islayoffs (52 followed by plans to restructure theird organization (46 percent), freeze the hiring of additional workers (39 give smaller pay raises (27 percent) and freezr salaries (13 percent). The results are based on Watson Wyatt'as (NYSE: WW) Global Strategic Rewardsx Survey to be released laterthis year. About 1,39o0 employers participated in the including 276 employers in theUnited
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