The latest stat shot from Watson Wyatt shows that employers — perhaps sensing a reheating economy — are ready to thaw out some of those frozen salaries and 401(k) matching contributions that have been on ice most of the last year.
Just in time for Valentine’s Day, 33% of employers that froze salaries plan to show their love by unfreezing them within the next six months, up from 17% two months ago. Another 44% plan to roll back salary cuts in the next six months, compared with 30% two months ago — perhaps flowers AND candy this year, eh?
Additionally, 24% of employers plan to reverse reductions to 401(k) match contributions in the next six months, versus 5% in June.
But don’t go buying that new Porsche just yet. WW also finds that those salary restorations may be wiped out by the 66% of respondents that increased the percentage that employees pay for health care premiums do not expect to reverse that decision. Also, 40% of respondents plan to shift more health care benefit costs to workers by increasing the percentage of premiums they pay.
