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The coronavirus is likely to stifle pay raises this year as employers who had been leaning towards a 3% or less increase versus 2019 deal with the pandemic fallout, according to a recent survey. So reports Newsday.

arrow 1435215 640 smallThe survey from November to January by Seattle-based Payscale shows that 71% of employers had planned to be less generous this year with pay raises, versus 67% from 2019. But, with the survey conducted prior to the major disruptions from the virus, many workers may end up with no raise this year while others may be let go.

“It’s likely that companies will do some hard analysis on their workforces to identify their top performers and key occupations and devote their budgeting towards keeping those employees engaged and retained,” says Sudarshan Sampath, director of research at PayScale.

WorldatWork, an Arizona-based nonprofit professional association in compensation, had pegged pay raises for 2020 to average 3.3% based on its own survey. But the pandemic means companies will have to review planned salary increases, says Sue Holloway, a strategy director at WorldatWork. “As organizations respond to the rapidly evolving coronavirus crisis, they will review their financial situation and human capital needs and make necessary adjustments,” she says.

Read the full article from Newsday.

Last modified on Sunday, 12 April 2020
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