As the economic recession continues, more and more employers begin to reduce their salaries. This month alone, the publishers of Dallas Morning Post, A.H. Belo Corp and Atlanta Symphony Orchestra, announced a pay cut of 15%.
As the economic recession intensifies, more and more employees can only accept the fate of salary reduction. In April 2009 alone, A.H. Belo Corp, the publisher of Dallas Morning Post, and Atlanta Symphony Orchestra announced a pay cut of 15%.
In some companies, layoffs only affect senior executives and senior management, but many other companies are taking a comprehensive approach or hierarchical pay cuts. Some companies are implementing permanent layoffs, and some companies promise that employees will eventually get full wages.
In some enterprises, salary reduction is only aimed at managers and senior management, but many companies are taking full salary reduction or hierarchical salary reduction. Some companies are implementing permanent pay cuts, while others promise to return to full pay in the future.
In some cases, companies try to limit the pain to higher management. Winnebago Industries Inc, a recreational vehicle manufacturer based in Forest City, Iowa, implemented a tiered pay cut in March. CEO Bob Olson has a salary cut of 20%, and other executives have a salary cut of10%; All other salaried employees? Wages have been reduced by 3%. In February this year, Mark Hurd, CEO of Hewlett-Packard Co, was cut by 20%, and other employees will be fined 2.5% to 15%, after Advanced Micro Devices Inc in Sunnyvale, California also took similar measures this year 1 month.
Some enterprises try their best to control the pain of salary reduction within higher management. Winnebago Industries Inc, a North American RV giant located in Foest, Iowa, implemented a graded salary reduction in March 2009. CEO Bob? Bob Olson's salary was reduced by 20%, other executives by 10%, and all other employees by 3%. In February of this year, HP CEO Mark? Mark hurd cut his salary by 20%, while other employees' salary cuts ranged from 2.5% to 65,438+05%, which was similar to the 5438+0 adopted by Advanced Micro Devices Inc in Sunnyvale, California.
Rob Katz, CEO of Vail Resorts Inc, a mountain resort chain in Broomfield, Colorado, gave up his salary in 2009 and will accept a 65% pay cut in 2065. His employees will give up between 2.5% and 10%, depending on their income. These cuts took effect in April.
Vail Resorts Inc, a mountain resort chain in Broomfield, Colorado, has 654.38+500,000 employees, and CEO Rob? Rob Katz chose to give up his salary in 2009 and reduce his salary in 20 10 by15%; His employees will pay 2.5%- 10% according to different income levels. The salary reduction plan was officially implemented in April 2009.
Challenger, Gray & ampChristmas, a global re-employment company, found that among the 100 human resources professionals surveyed, 27.2% said that their company had frozen or cut wages. Watson Wyatt Worldwide, a human resources consulting firm, conducted a survey of 245 large American companies in February this year, and found that 4% of the companies plan to reduce their salaries in the coming year, and 7% have already implemented salary cuts.
Challenger, Gray &; According to a survey conducted by Christmas on June 5438+ 10, 2009, 27.2% of the' human resource managers' interviewed at 100 said that their company had frozen salary increase or salary reduction. Watson Wyatt Worldwide, a human resources consulting firm, conducted a survey of 245 large American enterprises in February this year, and found that 4% of the enterprises surveyed plan to reduce their salaries in the next year, and 7% have already implemented salary reductions.
Before the current economic recession, the practice of compulsory salary reduction has been? Very rare, Challenger, Gray & Despite recent calls to limit the salaries and bonuses of executives.
Although public opinion recently called for limiting the salary and bonus of corporate executives, what was the practice of reducing salary before the crisis? Very rare? Challenger, John, CEO of Gray & Christmas? John Challenger said.
Other companies implemented layoffs, but also increased incentives to make up for the loss of wages. In March this year, Thompson Hine Law Firm implemented its first salary cut since the Great Depression. The firm? About 200 partners and non-partner lawyers were forced to accept a pay cut of 17500, and their starting salary was usually around 100000.
Some enterprises have reduced their salaries, but at the same time introduced incentive plans to make up for the loss of employees' wages. In March 2009, Thompson Hine Law Firm launched its first salary reduction plan since the Great Depression. There are about 200 non-partner lawyers and assistants in the firm, and their annual salary is generally above100,000 US dollars, and they are forced to pay 1.75 million US dollars.
? This is an unusual and aggressive step? David Hooke, managing partner of Cleveland Law Firm, said. ? I'm nervous [because] whenever you do such a thing, you will feel anxious. ? Warning: A lawyer who charges 1 0,750 hours can recover the salary loss of $7,500, and a lawyer who charges 1 0,900 hours can recover all the losses.
? This is a bold and unusual step. David, managing partner of the institute? David Hook said. I am very nervous, because making such a choice is bound to make people anxious. ? Fortunately, the company has given another policy: lawyers whose business hours exceed 1.750 hours can get back another $7,500, and lawyers whose business hours reach 1.900 hours can get back their wages.
Jared oaks, a 30-year-old partner of the company? He said, even though he's not? T be excited about the pay cut, but this measure has brought some relief. ? A few weeks before the announcement, a large law firm announced layoffs. What do you think? When will our company collapse? He said. ? Natural anxiety about the unknown was taken away. ?
Jared, 30? Jared Oakes, a paralegal for the company's real estate team, said that although he was dissatisfied with the pay cut, he was satisfied with the announced plan. ? When pay cuts are announced, there are often news of layoffs in large law firms, and we can't help but wonder what measures will be taken. ? The cow said,? As soon as the plan came out, the panic caused by the unknown disappeared. ?
Nevertheless, Mr. Oakes has other reasons to be anxious about his pay cut: he and his wife, Jillian, 3 1, a social worker, are expecting their first child. He said that the pay cut is part of the reason why she limited maternity leave to three months instead of the four months she planned.
However, Oakes has other reasons to worry about pay cuts: his wife Jillian (365,438+0) is a social worker, and they will have their first child soon. Oaks said that Gillian shortened maternity leave from the original four months to three months because of salary reduction and other reasons.
Organizations in trouble may have no choice but to cut their salaries across the board. After failing to make payroll in mid-March, South Carolina? The Charleston Symphony Orchestra of the United States reduced the salary of all staff by 1 1.4%. Musicians in the orchestra were also hit by 165438+ 0.4% in the form of unpaid leave. Together, these efforts will save180,000 dollars. ? This is very, very painful for them? Ted Leggsy from the band said that? Chairman of the board of directors. ? It? This is a great sacrifice. These people aren't they? The salary was not high at first. ?
Enterprises in trouble have no choice but to take a full pay cut. In mid-March, 2009, the Charleston Symphony Orchestra in South Carolina could not pay its salary, so it had to reduce its salary by 1 1.4%. The musicians in the band were forced? Enjoy? Unpaid vacation is equivalent to another loss of 1 1.4%. Together, these measures can save the orchestra 654.38 USD+800,000 USD. ? This is very, very painful for the band. Ted, chairman of the orchestra Committee? Ted Legacy said? They lost a lot because their wages were not high. ?
Some employers are trying to cushion the blow. Momentive Performance Materials Inc. in Albany, new york is a chemical and special materials company with 4,600 employees worldwide. Any employee who is forced to take a pay cut will get an extra week's paid vacation every quarter when the pay cut is still effective.
Some enterprises try to mitigate the impact of pay cuts on employees. Momentive Performance Materials, a chemical company in Albany, new york, has 4,600 employees worldwide. During the validity period of salary reduction measures, any employee whose salary is reduced can enjoy an extra week of paid vacation every quarter.
Similarly, the non-union employees of the New York Times Company were forced to accept a pay cut of up to 5%, which took effect this month, but in return, they got a 10 day holiday. Vail Resorts is offering stock-based incentive compensation to full-time and year-round employees according to the floating ratio. ? It? Partly to soften the blow, but? It also gives people some ownership to participate in our future success. Mr. Katz, CEO, said.
Similarly, New York Times employees who did not join the union were forced to take a 5% pay cut, which took effect in April 2009, but they can enjoy 10 days' holiday. Vail Resorts offers gradually reduced stock incentive compensation to full-time employees who have worked for one year. ? This will not only alleviate the impact of salary reduction, but also encourage employees to participate more in the future development of the company. ? CEO Katz said.
If your company isn't? Experts say it is not clear how long the cuts will last, and you should consider them permanent. Kennan, head of Hewitt Associates, a workplace consulting firm? The North American Compensation Association says employees should be prepared for the lasting impact of pay cuts. ? I hope most employees won't find what they lost. He said. ? We don't know. Don't expect the salary increase budget to come back. . . It's been years. ?
Experts say that if your company doesn't say how long the pay cut will last, you'd better think it's permanent. Conan, head of the North American Labor Department of Hewitt Associates, a career consulting firm? Kenan Abosch, a staff member, said that employees should be psychologically prepared for a long-term pay cut. ? I don't think most of the employees whose salaries have been reduced will return to their original salary levels. ? Abersy said? It is difficult for enterprises to bear the salary increase budget in the next few years. ?
Heidi Shierholz, an economist at the Economic Policy Institute, a Washington-based left-leaning think tank, said that the exception might be service companies in areas such as hotels, insurance and health, and she expected their wages to rebound once demand picked up.
Heidi, an economist at the Institute of Economic Policy, a left-wing think tank in Washington? Heidi Shierholz said that only service sectors such as catering, insurance and medical care may be exceptions. Once demand picks up, employees' wages should rebound.
If you are forced to take a pay cut, the financial planner suggests making a realistic new budget and sticking to it. Consider obvious cuts, such as cable TV and restaurants. If your pay cut is large, you may have to take more drastic action. Although it? This is usually a taboo, and you may want to use your pension and college savings to release some cash, at least temporarily. Joseph Montanaro, a financial planner at USAA, a financial services company, said that if necessary, you can reduce the contribution of your 40 1(k) account to the level that the employer fully matches. He also suggested reducing or stopping donations to children? Until your salary returns to normal level.
If you are forced to accept a pay cut, the financial planner suggests that you make a realistic new budget and stick to it. Some luxuries must be given up, such as watching pay cable TV and eating out. If the pay cut is large, you may have to take more radical action. Although unconventional, you can consider taking some money from your 40 1(k) account and your child's college education fund, at least temporarily. Joseph, USAA planner of financial planning enterprises? Montanaro said, if necessary, you can reduce the money you put into your 40 1(k) account every month, so that your personal income can be restored to the state before the salary cut. He also suggested reducing or suspending the funds for children's college education until the income returned to normal level.
Emily Rebinsky, marketing director of the Charleston Symphony Orchestra, said that she and her husband, who live in John Island, South Carolina, will cut back on their expenses because of the pay cut. ? (Colleagues) There is a certain degree of uncertainty about mortgage payment and bills. The 28-year-old said. The couple also decided to cut the contributions to their Ross IRA. She and her colleagues also started selling furniture and other items on Craigslist or in yard sales.
Emily, Marketing Director of Charleston Symphony Orchestra? Emily Rybinski said that she and her husband, who lives in John Island, South Carolina, will cut back on family expenses because of the reduced salary. ? Some colleagues have some problems in paying mortgage and daily bills. ? Emily, 28, said. The couple also decided to reduce the amount of money invested in Ross's IRA. She and her colleagues also started selling furniture and other household items on Craigslist classified websites and flea markets.
? Even our cat has been hit by the budget-no more toys and snacks. Ms. Leibinski said.
? Even our cat is cutting back-it can no longer enjoy new toys and snacks. ? Emily said.
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