Raises in 2009

Paul in Cannon Beach · December 2008

Are you budgeting increases/decreases in salaries for 2009? We are decreasing raises to a minimum (1.5%). I am not excited about this but it seemed necessary in light of the economy and a better option than cutting positions.

KSR6450 · December 2008

We lowered our maximum salary increase from 4% to 3% for 2009. We are discontinuing several programs, including all bonuses, as well.

stilldazed · December 2008

We have minimal increases budgeted, 1% to 3%. However, Florida's minimum wage will increase 6+%, which will impact our organization as of 1/1/09 and probably keep wage increases for workers above the new minimum wage to the low side of our budgeted increases.

Times are surely tough and projected to get a tougher before they get easier, at least that's the news I'm hearing.

We may be in the same position as you a year from now, not a message I would look forward to carrying to employees.

Paul in Cannon Beach · December 2008

My main concern is how we communicate these cuts. Fortunately, our director is very good at communicating news in a way that minimizes the shock.

Still, its going to be discouraging to some, especially to those who are already right on the edge of making it.

KSR6450 · December 2008

I don't know - maybe I am naive - but to me ANY raise at this time is a plus, and that is how my employees took the news. At least none of us had to offer no increase...yet.

Paul in Cannon Beach · December 2008

I think the constant bad news on the economy does help people appreciate their jobs and whatever increases they are getting. This is the first thanksgiving that I can remember where I heard people being thankful for having a job.

sonny · December 2008

Our FY is 10-1. Historically we have gotten a "general increase" which in all but 2 of the 10 years I have been here has equated to the COLA in our area. In addition, merit increases of typically 2-3%. This year we got a flat 3% across the board. . no merits. Amazingly I did not hear ONE complaint. It helped that we had NO increase in health insurance. .we pay 100% of ee and a tiered % contribution to dependent coverage. Folks with dependent coverage were delighted. Increasingly I hear, well at least I have a job as more as more people have friends and family being laid off.

stilldazed · December 2008

HR seems to consistently be the bearer of bad news when there is bad news in the employment setting, which requires a masterful skill at spinning the message. I would never advocate a callous or dishonest response. My bad news messages in the past that have to do with employees' money usually target the picture of an overall negative economic or industry affecting my employer, our efforts to buffer the impact to employees, and the final impact on employees. The relativity of the message and the order in which the circumstances are presented have a way of making the ultimate bad news seem a little more positive by the time I get down to the target message. Employees are smart, and my messages are never intended to fool them in anyway, but the reminder of tough economic times seems to set the stage. My finding has typically been that they generally expected the message we had to give and were somewhat sympathetic to the inhouse attempts to buffer the impact on their incomes. Our bad news messages in the past have been primarily related to health insurance rate increases. We have begun the bad news wage increase messages this year, and we haven't lost anyone yet.

best wishes

C Wilson · December 2008

We have a wage & hiring freeze in effect, which began in October & will continue through 2009. We also canceled our holiday party for 2008. Starting in January we are asking EE to participate in voluntary attached lay-offs as a cost savings measure.

KathyHR · December 2008

[font size="1" color="#FF0000"]LAST EDITED ON 12-02-08 AT 02:19PM (CST)[/font][br][br]Last year when we did the budget I budgeted for a 3.5% average increase. They will range from 0% - 4.5% depending on the performance evaluation but the average is 3.2%. This year when we did the budget I used 3.5% again, so we'll see what's approved next October.

We've had a 2% decrease in funding this year and expect another 3% decrease next year, but the board is good about giving employee increases and we've cut back in other areas, including cutting staffing through attrition.

Dutch2 · December 2008

When we set our salary budgets for 2009, in October, we will instructed to use our usual 3% increase. Last evening at a mandatory employee meeting our President/CEO covered how the ecomony has effected our business in 08 and predicted what may happen in 09. He then shared with everyone that there will be a wage freeze for everyone in 2009. We have never had to lay-off anyone and we are doing our best to keep it that way. The employees present, about 70-75 percent of the total, took the news very well. Everyone seemed to understand. We go to a near by city this evening to present the news to the remainder of our team. I am sure the cat will be out of the bag before the meeting but I expect it to go just as well. We started off the meeting that everyone was not called in to scare you but to share with you where we are and what we can do to stay a viable business.

KSR6450 · December 2008

While it can be disheartening to give and hear this kind of news, it seems like everyone is doing a good job at relaying the bad news to their employees. Hopefully the employees realize that the companies are trying to avoid layoffs.

At least no one has commented that there are still increases for the C Suite or an executive golf trip planned while everyone else takes the hit. That is encouraging!

Paul in Cannon Beach · December 2008

Well, according to the weekend sales numbers, people are still buying crap they can't afford for people who don't need it anyway. So, we must not be that bad off...

ACU Frank · December 2008

We're budgeting about 4%, with a dramatic increase in incentive potential as well. At the same time, I'm budgeting for continued high involuntary turnover. In the past year, we've experienced record results and we leveraged our strengths as an employer to upgrade our workforce (i.e. - dump the poisonous attitudes). We hope to be able to shed the last few malcontents in the coming months.

Paul in Cannon Beach · December 2008

That brings up another interesting question. How many of you are using the economy as an opportunity to remove the "deadwood"?

KSR6450 · December 2008

[font size="1" color="#FF0000"]LAST EDITED ON 12-05-08 AT 08:35AM (CST)[/font][br][br][font size="1" color="#FF0000"]LAST EDITED ON 12-05-08 AT 08:33Â AM (CST)[/font]

Most of our 'deadwood' is in a protected class. The class that goes to 'recess' every day with the CEO/President. While the Board is trying to get rid of these people the CEO is very resistant, which is causing major issues. One reason I am planning a career change - before one is made for me. Because isn't HR usually the first department to get hit in a RIF? Guess not...

KSR6450 · December 2008

Update: Found out this morning we are letting 3 people go as of January 1. They are non performers and needed to be cut loose but it is still very sad. What a way to celebrate my birthday x:-(

No one else has replied that they are going to have a RIF. Are we the only ones?

GJohnson · December 2008

With the real estate industry hard hit, resulting in a drop in membership and expected larger drop at the first of the year with members' dues renewals, we have budgeted no salary increases or merit bonuses for 2009. We have kept our 401k safe harbor and matching funds and we have budgeted to continue to pay 100% for employee insurance - which we are expecting an 8% increase. We have also kept the holiday bonus intact as it is a set amount. Nearly all staff travel was cut, as well as a substantial amount for our volunteers.

We reduced costs in 2008 through attrictian. We are down 5 positions since the end of 2007 - including a department manager. Plans at this time are to only replace key positions. Staff also worked hard to substantially reduce operating costs in 2008 by reducing waste, purchasing only things that were needed to do the job and bidding out large jobs.

If we hit our budgeted target membership, we do not anticipate any reduction in staff. If it falls below, all departments would be up for review. Alternatively, if member numbers increase above the target number we will revisit reinstating some staff or member benefits.

As others have commented, I think everyone on staff knows someone who has lost a job..........and possibly their home. We have asked our managers and staff to deliver top customer service in these difficult times. As we have reminded them, we get a paycheck every other week...........our members earn a commission only when a deal finally closes. Even with lower housing prices our members are having a difficult time as those who can now afford a home are having difficulting getting financing. We are optimistic that there is a turnaround in sight.

ritaanz · December 2008

We have had two lay offs so far and were told on Tuesday that there will be a wage freeze in 2009. The people here understand the circumstanses and are willing to help in any way they can. Some have volunteered to take time off if requested.

KSR6450 · December 2008

I'm considering changing to part time after the first of the year. There is a teller here who would love to do some of more mundane chores in her spare time and it would save the Bank some money. Just not sure how that will factor in with the vesting of my stock options, etc. I'm still looking at all the benefits that could be impacted. Any suggestions?

System · December 2008

Our raises 2009 survey will close on this Thursday (Dec 11) and we'll announce the results in Friday's HR Hero Line. You can still take the survey by going to [url]http://www.hrhero.com/survey/survey.cgi?raises2009[/url]

Wendi

System · December 2008

To see the results of the survey go to

[url]http://www.hrhero.com/survey/results.cgi?raises2009[/url]

ACU Frank · December 2008

I kept getting an error when I tried to take the survey, so I expected I wouldn't be able to view the results, but I got in just fine. It makes me feel good about where we're at.

KSR6450 · December 2008

Oh Frank,
I just have to do this -

"about where we're at" - you are behind the 'at'....
My mom taught English for years; if I heard that saying once I heard it a thousand times. Sorry!

Paul in Cannon Beach · December 2008

Cool... thanks for posting the results Wendi. You got a lot of responses!

ACU Frank · December 2008

Even an English minor can go bad.

KSR6450 · December 2008

You have turned to the darkside - the world of bad english? Oh heavens. Hope theology wasn't your major!

Raises in 2009

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