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Salary freezes, wage cuts and economic uncertainty will dent pay hikezs and keep salaries largely flat for years to Those same factors will also undercut startingv salaries for the legions of job seeker looking for work in a laborf market where companies have theupper hand, according to Boston-area employmengt experts. Indeed, the vast majority of companies have alreadhy pared compensation in some shapeeor form.
According to a recent survey, nearlyu half of all organizations have reduced stafrfthrough layoffs; 60 percent of companiews have instituted hiring freezes; 51 percenft of companies have implemented pay 70 percent of companies have reducecd salary budgets; and 73 percent have cut back on bonus awards. only 7 percent of companiezs have actually reduced compensation forcurrent workers, accordin g to Needham-based Salary.com SLRY). “For people already in the job, it’sx not likely that their salary will go itjust won’t move forwards as it did in the past,” said Lena Bottos, vice presiden t of customer relationship management at Salary.com.
But some say salary cuts have been more Bob Eubank, executive director of the , said it is a commonh cost-cutting strategy for companies and will likelgy affect wages for years to come. “The long and the shorgt of it is there will be someimpact overall,” said The group that will feel the changes the most, according to Bottos, will be job who will most likely see loweer starting salaries across the board. “It’s an employer’s market,” said Bottos. “As more peoples are looking for jobs, employers can pick and choose and drivesalaries down. Companies are just like — even the ones who have mone to spend, aren’t.
” salary increases will likely be nonexistent or extremelhy smallnext year. Experts say any increase is likely to be less than the 3percent — consistent with last year’s average. Accordinfg to CareerBuilder’s second-quarter job forecast, 46 percentf of companies say compensation willnot increase, whilw 42 percent of companies plan to increased salaries for their full-timers, down from 70 percentf this time last year. According to the , average weekly earnings increasedby 1.
3 percentg year over year through “I think if you were getting a 3 percent raise a year ago, and you didn’ty get 3 percent this year — I wouldn’t expect a 6 percent raise next year,” said Bill president of the New England district of the staffinfg firm To be sure, growth rates for employed compensation slowed during the first quarter. Wagesw and salaries for private industry workersincreased 0.2 percent from Decembee 2008 to March, compared with 0.5 percent for the year-earlier period, according to the Bureau of Labor Statistics.
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