As of now, the 2010 compensation outlook can probably be best described as good news tempered by continued uncertainty. This is confirmed by recently released research from Towers Perrin, which features the late October responses of 33 compensation and HR professionals.
The research finds that most salary budgets will be unfrozen in the coming year, but that companies are planning to spend with greater care, using more differentiation in distributing the limited salary dollars they will have available.
A few select statistics:
- 43% of participants report having frozen salaries in 2009.
- 65% of those that froze salary budgets in 2009 will unfreeze them in 2010.
- Just 17% say they have plans for a salary freeze in 2010.
- 40% of respondents report plans for more differentiation in their 2010 salary review process than in previous years.
Back to normal? Not really. Normalcy is a relative thing, and I think we're on our way to a new normal, the implications of which we are just beginning to grasp.
2010 will be an interesting year.
Image: Creative Commons Photo "Question Mark" by Marco Bellucci
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