Executive compensation consultancy Pearl Meyer just completed a COVID-19 related survey of 369 respondents (182 publicly traded companies, 143 private firms, and 44 not-for-profit organizations), assessing the economic impact of the pandemic. It revealed approximately half of companies (47%) do not have any immediate plans to adjust pay for salaried (48%) or hourly (54%) staff, suggesting income stability for some.
“This pandemic impacts industry sectors differently, and its effect on pay and workforce decisions vary as well,” said Jim Hudner, managing director at Pearl Meyer.
The survey also found that 22% of companies have taken actions impacting staff such as furloughs or layoffs, while almost a third (31%) are considering actions.
With the pandemic unfolding over a period of months, businesses are focusing on controlling fixed costs, with payroll a major concern during an economic decline. Only 16% of survey respondents have either decreased or frozen salaries and only 7% for hourly employees.
Merit increases have not been significantly impacted, as only 18% have either delayed, cancelled, or reduced planned merit increases, but a substantial portion, 45%, have not and do not intend to change planned increases. So far only 6% of companies have reduced or eliminated employer contributions or matches to their retirement plan, but 16% are weighing taking that step.
The survey was conducted from 4/2/2020 to 4/6/2020.
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