Survey: More Firms Planning to Reverse Salary, Hiring Freezes

Authored by Mark Hefflinger on October 30, 2009 - 7:09am.

Arlington, Va. - Approximately half of the companies that froze salaries and hiring in the past year now plan to unfreeze them in the next six months, according to a new survey by consulting firm Watson Wyatt.

According to the survey, 54% of employers that froze salaries now plan to unfreeze them, a sharp increase from 33% in August and 17% in June.

In addition, 49% also plan to reverse hiring freezes at least partially, compared with 38% two months ago.

The survey also found that an increasing number of employers are planning to reverse reductions to 401(k) match contributions in the next six months.

"The general economic picture right now is definitely brighter than it was just a few months ago," said Laura Sejen, global director of strategic rewards consulting at Watson Wyatt.

"However, the recovery is uneven and most employers aren't fully convinced that the improvements they've seen are here to stay."