Expecting A Big Raise In 2009? Think Again

Hewitt Associates, a human resources consulting firm, in a survey found that U.S. workers’ base pay will rise by only 3.8% in 2009, marking the seventh consecutive year of flat growth, MSNBC reports.  One-time performance-based pay, however, is expected to grow by 10.6%, slightly from 10.8% this year and 11.8% in 2007.

Performance-based rewards are becoming more popular since they don’t commit companies to ongoing costs, the group said.  The survey measured one-time performance-based awards and did not include raises based on performance.  The most common one-time performance-based rewards were signing bonuses, used by 65% of companies, followed by incentives used by 63%, special recognition awards, 56%, individual performance awards, 41% and retention bonuses by 39%.

The vast majority of companies, 90%, use performance-based rewards as a way to attract talent, the study found.  Almost no companies said they will be cutting salaries in 2009.