Wage and hiring freezes are starting to thaw at U.S. companies that implemented the freezes during the recession, according to a Watson Wyatt survey.
The Washington-based human resources consulting firm reported 54 percent of employers that froze salaries plan to unfreeze them within the next 6 months, up sharply from 33 percent in August and just 17 percent in June. At companies that implemented hiring freezes, 49 percent expect to at least partially reverse them in the next 6 months.
“The general economic picture right now is definitely brighter than it was just a few months ago,” said Laura Sejen, Watson Wyatt global director of strategic rewards consulting. ”However, the recovery is uneven and most employers aren’t fully convinced that improvements they’ve seen are here to stay [and] they remain concerned about their ability to attract and retain the right people.”
Not all companies are out of the woods, either. About one-fifth of those surveyed still anticipate making layoffs this year or next, according to the survey.
With the holiday season approaching, there is still little reason to hope for a big office party. Only 37 percent of employers plan to organize a holiday party this year, compared with 70 percent in 2007.