Pay Raises Expected to Rebound in 2010
Pay raises for U.S. workers are expected to rebound in 2010, following a year in which many companies slashed raises in the wake of the recession, according to a new survey by Watson Wyatt. Companies are projecting median merit increases of 3.0 percent for 2010, according to the Watson Wyatt 2009/2010 U.S. Strategic Rewards survey report. The survey includes responses from 235 large U.S. employers gathered in May 2009.
Last year, before the onset of the recession, companies projected 3.5 percent merit increases for 2009. Now, companies say median merit pay increases will be 2 percent in 2009. Additionally, fewer companies plan to eliminate pay raises in 2010. According to a separate survey of nearly 900 companies conducted by Watson Wyatt Data Services, a subsidiary of Watson Wyatt, only 10 percent of companies are planning no pay raises for workers in 2010 compared to 25 percent this year.
Economy Drives Midsize Companies to Work Smarter, Leaner
A new study by IBM of midsize organizations in 17 countries shows that companies have not been deterred from their plans for strategic IT initiatives, which range from information management and security management to social media and cloud computing -- despite a clear recognition of the need to cut costs in a difficult economy., IBM's study reveals five key trends:
1. The highest-priority technology solution, chosen by 75 percent of respondents, is Information Management, which turns mountains of data into meaningful insights
2. The most pressing business challenges include increasing efficiency and productivity (80 percent), improving customer care (74 percent) and better use of information (72 percent)
3. The impact of the economy on IT budgets has caused 53 percent to actually increase or re-prioritize their spending, with 37 percent reporting a decrease
4. Despite the economy, more than two-thirds of those surveyed are planning or currently implementing their top IT priorities
5. A majority of firms view their primary IT provider as a technology advisor or IT and business consultant, with 25 percent seeing the relationship as purely transactional
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