But two-thirds not looking to cut salaries: survey
In looking at how North American employers are managing human capital costs amid the COVID-19 crisis, a recent survey finds workforce reductions are considered a last resort.
Only seven per cent of companies have made such cuts while nine per cent have plans to do so, finds Willis Towers Watson.
As alternatives, almost half (42 per cent) have frozen or reduced hiring, while 18 per cent have eliminated or reduced seasonal workers and 16 per cent have reduced the us of contract workers or other non-employee populations.
However, in an effort to control costs, the most considered course of action from respondents — at 28 per cent — is to lay off or reduce workforce, found the survey of 812 employers conducted March 23.
For those employers that have made reductions, 90 per cent affected hourly employees and 77 per cent affected salaried employees. Only 34 per cent affected the executive level.
Compensation changes
Only five per cent of employers have or are planning to reduce salaries, finds the survey, while two-thirds are not planning or considering such a move. Typical salary reductions range between 10 and 20 per cent.
However, 15 per cent of employers have reduced or delayed merit increases, and 11 per cent have implemented salary freezes.
When it comes to workers required to physically be present at work, eight per cent of employers are providing pay premiums, while another eight per cent are providing retention awards.
Almost one-fifth (16 per cent) of employers are providing employee subsidies to help employees manage the costs of working remotely, such as wi-fi, child care or office equipment.
