Salary.com Survey Report Describes COVID-19 Impact on Compensation, Benefits
Posted on June 18, 2020
Salary.com, an endorsed business partner of the MHA and a leading software provider of cloud-based compensation data, software and analytics, released new survey data that shows 66% of employers either reduced their workforce or negatively impacted employee pay in response to COVID-19, though just 10% of survey respondents expect the layoffs to be permanent.
The downloadable summary report provides the results of the COVID-19 Compensation and Benefits Impact Survey that Salary.com conducted in mid-April. The survey targeted 1,176 compensation managers across the U.S. and Canada to better understand the full range of actions that employers and human resources professionals are taking in response to the COVID-19 pandemic. The report provides details on industries most impacted by the current crisis, as well as how organizations are adjusting base and variable pay and long-term compensation strategies.
Industries such as healthcare, retail (brick and mortar), manufacturing, and nonprofits — hit the hardest by the economic downturn — were more likely to take multiple negative actions that impacted employee pay. For all industries, 20% of employers eliminated planned merit raises for 2020 and another 24% are postponing merit increases. Within the healthcare sector, 52% indicated no change in merit increases in 2020, with another 31% indicating they did not know whether there would be a change. In terms of staffing, 26% of healthcare sector respondents implemented furloughs compared to an average of 30% in all industries. Additionally, 16% of healthcare respondents indicated an increase in temporary hiring, with another 15% indicating an increase in permanent hiring.
Salary.com plans to update the survey data quarterly to help organizations with total compensation decisions. Information on the complete Salary.com survey catalog and how to participate in future surveys, including the COVID-19 Compensation and Benefits Impact Survey and the 2020 Salary Budget Survey, is available on the Salary.com website. Members with questions may contact Greg Leonard at Salary.com. For more information on the MHA Endorsed Business Partner program, contact Rob Wood at the MHA.
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