ResumeTemplates.com, a leading platform for professional resume resources, has released a new survey report shedding light on the impact of economic pressures and a tight labor market on salaries and benefits in U.S. companies. Conducted in August 2024, the survey of 1,000 business leaders reveals significant shifts in compensation practices, with many companies making cuts to salaries and benefits.
- Salary Reductions:
- 27% of surveyed companies have reduced current employees’ salaries.
- 71% have maintained current salary levels.
- 2% are unsure about their salary reduction status.
- Among those that cut salaries, 58% cited employee performance as the primary reason.
- Benefits Cuts:
- 50% of companies have reduced employee benefits.
- Most common changes include:
- Reduced paid time off (PTO)/vacation days (23%).
- Decreased or removed stock options/equity grants (21%).
- Reduced or eliminated meal allowances (20%).
- Impact on Employee Compensation:
- 9% of companies will not provide raises to any current employees.
- 77% plan to give or have already given raises this year.
- 15% are unsure about future raises.
- 21% will not provide cost-of-living adjustments to employees.
- Expert Insight:
- Julia Toothacre, Chief Career Strategist at ResumeTemplates: Warns that ongoing cuts to salaries and benefits could lead to talent loss and a decline in productivity. Emphasizes that employees are more likely to excel when they feel appreciated and adequately compensated.
The survey by ResumeTemplates.com highlights a challenging period for U.S. companies as they navigate economic pressures and a competitive labor market. With a notable percentage of companies reducing salaries and benefits, the potential risk of losing valuable talent and decreasing productivity is a pressing concern. Companies must balance cost management with employee retention to sustain long-term success.
