Many
business
owners
are
very
interested
in
what
others
are
doing
about
salary
actions
in
2010.
We
polled
members
of
Chief
Executive
Boards
International
to
find
out
what
they're
planning
for
salary
increases
or
adjustments
in
2010.
Here's
what
they
had
to
say.
In 2009, 47% of those surveyed froze salaries. 40% reduced salaries, either across the board or selectively. Only 13% increased salaries.
Besides these answers to survey questions, these business owners had the following additional comments on their 2010 compensation plans:
In 2009, 47% of those surveyed froze salaries. 40% reduced salaries, either across the board or selectively. Only 13% increased salaries.
In
2009,
40%
of
those
surveyed
reduced
hours,
of
which
68%
have
returned
to
standard
hours
by
now.
For
2010,
30%
intend
to
continue
their
salary
freeze,
while
23%
intend
to
increase
most
salaries.
Those
increases
will
be
in
the
range
of
2%-4%
for
41%
of
companies.
Besides these answers to survey questions, these business owners had the following additional comments on their 2010 compensation plans:
- As
a
bonus
we
gave
a
week
off
with
pay
in
lieu
of
cash
- We
have
a
common
review
and
compensation
adjustment
period
with
all
occurring
in
the
month
of
September.
So
we
are
not
planning
any
salary
adjustments
come
September
2010
lasting
thru
September
2011.
However,
we
do
plan
in
September
(or
before)
giving
bonuses
in
the
1-4%
range
in
lieu
of
permanent
salary
increases.
This
will
give
us
flexibility
to
share
profitability
of
2010,
but
not
commit
to
permanent
increases
thru
most/all
of
2011.
We
may
have
the
same
plan
in
mid-2011
depending
on
what
the
economy
does.
If/as
hiring
and
employment
heats
up
in
IT,
we
can
always
make
the
planned
bonuses
&
salary
increases.
- Incentive
compensation
- Instead
of
salary
increases
on
hourly
employees,
the
plan
is
to
institute
quarterly
incentive
bonuses
based
on
a
combination
of
company
and
individual
performance.
- It
varies.
Sometimes
time
off
or
other
small
incentives.
- Performance
bonuses
and
profit
sharing
this
year
to
offset
employee's
wage
freezes
in
2009
- Productivity
incentive
based
on
group
performance.
The
measure
is
in
good
pounds
shipped
per
man
hour
on
the
clock.
There
is
a
threshold
that
has
to
be
met
and
then
a
rapid
rise
in
bonus
thereafter.
- The
breadth
of
salary
increases
will
be
related
to
sustained
improvement
in
profitably
over
one
or
two
quarters.
- Until
our
market
gets
consistent,
we
are
trying
to
reward
performance
with
one
time
rewards
such
as
tickets
to
events,
some
time
off,
gift
cards,
etc.
so
that
we
don't
lock
into
fixed
increased
expenses.
- We
pay
bonuses
based
on
performance
goals
relating
directly
with
the
success
of
the
firm.
- We've
always
offered
a
combination
of
Bonuses
and
raises.
- We
have
been
fortunate
and
have
not
had
much
of
an
impact
on
our
revenues
and
profits
with
the
economy.
Therefore
we
were
able
to
increase
salaries
in
2009
and
anticipate
increasing
them
again
in
2010.
- It
has
been
a
"Seller's
Market"
for
many
years
and
now
it
is
a
"Buyer's
Market".
Most
people
I
know
today
are
just
happy
to
have
a
job.
- Salary
was
reduced
10%
for
2009.
5%
was
given
back
12/15,
and
the
remaining
5%
will
be
given
by
June/
2010.
So,
the
entire
salary
staff
will
be
back
to
their
2009
salary,
for
the
balance
of
2010.
Then
we'll
review
for
2011.
- Our
employees'
compensation
has
been
frozen
and
some
lowered,
including
the
owners.
Exception
is
two
employees
whose
level
of
responsibility
has
changed
dramatically
due
to
staffing
cut
backs.
We
have
adjusted
their
comp
upwards.
- As
of
March
1,
we
have
simply
reinstated
some
salaries
to
the
previous
levels.
No
increases
have
been
offered
above
that
existing
level.
In
2009
we
also
went
to
a
4
day
work
week
and
have
since
gone
back
to
5
days
as
we
have
seen
volumes
and
orders
significantly
increase.
Executive
compensation
remains
at
a
reduced
level
until
further
notice.
- Decreased
employer
contribution
to
HSA
but
also
reduced
deductible.
- We
are
also
making
selective
staff
reductions
(based
on
productivity
measures)
to
free
up
more
money
in
the
salary
pool
- In terms of hours, we are a contract manufacturing operation so we reduce and expand hours depending on demand
