A HAPPIER NEW YEAR?

Survey: Majority Of Employers Don't Anticipate Offering Higher Raises And Bonuses In 2005

MENLO PARK, CA, December 3, 2004 -- Bigger raises and bonuses aren’t expected to be in the cards for most employees next year, a new survey shows.  Sixty-three percent of chief financial officers (CFOs) polled said they do not anticipate offering larger raises in 2005 than in 2004; 62 percent do not plan to increase bonus amounts. 

 

The survey was developed by Robert Half, the world’s first and largest staffing service specializing in the accounting, finance and information technology fields.  It was conducted by an independent research firm and includes responses from 1,400 CFOs from a stratified random sample of U.S. companies with more than 20 employees.

 

CFOs were asked, “For 2005, do you anticipate offering higher raises than in 2004?  Their responses:

 

Yes .........................................................................       30% 

No...........................................................................       63%

Don’t know/no answer............................................        7%

                         100%

 

CFOs were also asked, “For 2005, do you anticipate offering higher bonuses than in 2004?  Their responses:

 

Yes .........................................................................       18% 

No...........................................................................       62%

Don’t offer bonuses.................................................       14%

Don’t know/no answer............................................        6%

                                                                                                             100%

 

CFOs who said they expected to increase raises and bonuses in 2005 were asked by what percentage these forms of compensation would rise.  The mean responses were 6 percent for raises and 10 percent for bonuses.

 

“Companies without plans to increase raises and bonuses may be exploring other ways to reward personnel in the coming year,” said Max Messmer, chairman and CEO of Robert Half and author of Motivating Employees For Dummies® (John Wiley & Sons, Inc.).  “As the job market improves, employee retention will become a greater priority.”

 

Messmer added, “In addition to monetary incentives, perks such as flexible schedules and additional time off can be effective ways to recognize outstanding performance.  Employees also find motivation in knowing their work is appreciated, which managers can demonstrate by frequently praising staff for their accomplishments.”

 

Robert Half has more than 330 locations throughout North America, Europe, Australia and New Zealand, and offers online job search services at www.roberthalf.com.


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