Fewer new hires, lower raises in 2009 p1 - Military Transition - Military Times EDGE

Employers are implementing hiring freezes and allotting less for raises in 2009 to cut costs amid concerns of a prolonged economic downturn.

Out of 1,000 midsize-to-large companies, 40 percent plan to reduce the amount set aside for raises in 2009, according to an October survey by New York human resources firm Mercer.

Twenty-five percent of companies are planning a hiring freeze in the next year, and another 25 percent are raising employees’ contributions to health care, according to an October survey of 248 companies by Watson Wyatt human relations consulting firm.

“I think we’re going to see a lot more of those reductions,” said Watson Wyatt’s Laura Sejen. “Companies are definitely taking a look at a full array of programs to find ways they can cut costs.”