Nearly twenty-five percent of organizations that froze pay in 2009 plan to prolong that freeze into 2010. More than fifty percent plan to resume normal pay levels, according to World At Work.
Many companies have taken a “wait and see” approach when it comes to resuming normal pay levels. Moving to fast and restoring merit increases could be risky if the economic recovery fails to materialize. Moving too slowly may cause good employees with the right “skill set” to look for other opportunities in the work place.
FYI: New York has just issued new Notice-of-pay Guidelines that helps employers model the proper notices to be provide to new hires that explain rate of pay, regular pay day and overtime rate, if applicable.