That’s according to a new survey of more than 700 U.S. companies by employment consultancy Willis Towers Watson.
On average, companies now expect an average increase of 2.6% in the salaries of non-executives, which was initially projected at 2.8% for all employees. For officials, the estimated increase would be 2.5%.
The main reasons for the drop are: poor financial results, cost management and budget cuts.
By comparison, the average annual salary increases About 3% of all employees are from the Great Depression.
The survey also found that about 10% of companies do not plan to offer a salary increase.
“For many companies, lowering the salary budget, and in some cases, postponing the pay rise, was the most viable option, as they maintain a competitive balance while maintaining financial stability,” said Catherine Hartman, North America’s rewards practice leader at Willis Towers Watson.
In terms of bonuses, the good news is that two-thirds of employers (66%) still plan to offer them.
But the survey found that companies would pay bonuses to executives and those in management.
Meanwhile, a quarter (26%) of companies say they are still undecided on whether they will be able to pay the bonus, and one in 10 companies (8%) say they will not.
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