Smaller raises?

Go Back to Full MMI

But if they are slow to pull the trigger on expansion, are they quick to react to slower growth?

This quarter we asked executives whether they had accelerated cost-cutting and efficiency efforts in the last six months. Forty-six percent said they had; 11% said they had increased cost-cutting significantly. (A nearly equal number, 47%, said their cost-consciousness was unchanged, and 7% loosened the reins.) Those efforts appear to include trying to hold the line on salary increases, despite a shortage of talent: Six months ago 46% of executives said they planned to raise pay to keep people and that number is down to 42%. Along with a projected decrease in hiring and increases in healthcare costs, this suggests that bosses may be more Scrooge than Santa when merit increase time rolls around.