Closing the Door on Salary Freezes: July 2010?

For the employers who froze wages and salaries during the recession, discussion during 2010 often centered on when and how to end the freeze.

In its 2010 Economic Downturn Survey conducted earlier this year (the results of worth were featured in the just-released October issue of WorldatWork's workspan magazine), Salary.com collected data from 327 organizations on their responses to the past 18 months of economic uncertainty.

Half (50%) of the responding employers reported freezing salaries/wages during the downturn.  Then came the interesting chart that I attempted to scan and insert below.  It shows that about half of those organizations with a freeze in place actually have ended or anticipate ending that freeze in the first half of 2010, and nearly a full quarter anticipate that the freeze will end in July 2010 (the spike in the chart below, if you're finding the dates and numbers a bit fuzzy).

 
  
How about that spike?  What's so magical about July?  It could be that things were still too uncertain in early 2010 to make a definitive call and restore wage/salary increases - but leaders were willing to wager on a mid-year commitment.

At any rate, I thought it was an interesting piece of information. 

Your take?  Does this match what's happened/happening at your organization?

Comments

[Betty Wright]

I think the date of July is simply tied to an organization's fiscal year budget. Most organizations begin a new budget in July so it would make sense that this is the month where the spike is noticed.

[Ann Bares]

Betty:

Thanks for the thoughts. That answer occurred to me; however, when I look at all the many organizations that I work with only a small minority do their budgeting based on a fiscal year that begins in July. The predominance are still tied to a calendar year.

Anyone else weigh in here? Has there been a shift to a July based fiscal year that I have simply missed or overlooked?