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In the midst of a slumping national economy, ever-increasing gas prices, and a looming election, “uncertain” is perhaps an understatement for the way many companies feel about creating their budgets for the year ahead. Just as unsure are their employees, many of whom are preparing for year-end reviews and wondering how current economic conditions will affect planned wage adjustments and/or merit increases.
Despite doom and gloom forecasts, however, recent research uncovers some interesting trends for employee wages in 2009.
Good News for Employees
Employees nervously awaiting news of budget cuts and cancelled raises can breathe a (temporary) sigh of relief. Several recent surveys by leading research firms all point to the same conclusion: despite the economic slowdown, U.S. employers on the whole plan to keep wage increases steady for 2009. A survey by Watson Wyatt Worldwide revealed that employers plan to give workers pay raises averaging 3.5 percent during 2009. Likewise, WorldatWork's annual Salary Budget Survey predicted an average 3.9 percent planned increase in salary budgets, and Business and Legal Reports 2009 Annual Pay Budget Survey indicated an overall 3.71 percent planned merit increase for the coming year.
Employees should not expect pay raises to be distributed evenly across the board, however. Performance still plays a key role in determining employee rewards. Findings in all three surveys indicated that while most employees can anticipate a wage increase for 2009, those found to be performing exceptionally well can expect a much higher increase (between 4.4 and 6 percent), while employees performing below expectations will likely receive an increase of 2 percent or less.
Overall, the findings of these surveys seem to indicate that in spite of the economic slowdown, the labor market is relatively stable. Watson Wyatt Worldwide even hints that these planned wage increases may function as a form of economic stimulus. According to the company's global director of strategic rewards consulting Laura Sejen, while “the economy is no doubt taking its toll on workers, their 2009 merit increases appear safe – at least for now. Employees will view holding merit increase budgets steady as a positive sign that will help them offset inflation and higher energy and food costs.”
Why Employers Should Pay Attention
Companies developing budgets for the year ahead must pay close attention to these forecasts, and then assess whether or not they run the risk of losing key employees by failing to provide pay increases in line with those of their competitors. Companies who do not plan to keep up with the average pay increase may need to examine alternative means of rewarding employees in order to maintain a competitive workplace and ensure employee productivity and retention.
According to Anne Ruddy, president of World at Work, “pay increases are only one way an organization attracts and retains talent regardless of the overall economy. Organizations continually evaluate the attractiveness of their entire rewards package and develop new programs accordingly. They are investing in other areas of total rewards, such as employee development, training, and work-life balance.” Such alternative rewards may include additional vacation time, telecommuting options, or increased medical and dental benefits.
What About Contingency Plans?
While most companies appear to be building increased wages into their budgets for 2009, many must also develop contingency plans in order to withstand the possibility of further economic decline. For many organizations, layoffs and hiring and/or salary freezes are among the top contingency activities in place, according to Watson Wyatt. As companies evaluate their organizational staffing structures, they may face the troubling predicament of finding a way to lower overhead costs through layoffs while minimizing the effects these activities will have on production efficiency.
For employers facing layoffs and hiring freezes, utilizing contractor services through an employer of record may provide a cost-effective solution for maintaining productivity. Employers in the midst of a hiring freeze but in need of additional staff can hire contract workers through an employer of record service, minimizing the hidden costs of in-house hiring, workers compensation, payroll taxes, and insurances. When freezes are lifted, employers can then bring these contract employees on staff full time, or may choose to end the assignment without the risk of paying high unemployment costs.
The U.S. Kitchen Cabinets & Countertops Manufacturing industry recently released its 2009 Trendology report, which conducts a trend analysis in kitchen cabinets and kitchen countertops. So what are some the trends home owners can expect to see in the kitchen cabinets and countertops manufacturing sphere this upcoming year? The answer depends on who you ask.
With spending down and Americans worrying so much about the state of the economy, frivolous is out and functionality seems to be in. It is, however, possible to get the best of both worlds. Home and Garden television (HGTV) predicts that kitchen cabinet trends will marry style with function. The producer of the show “The Best in Kitchens and Baths,” HGTV says, “Furniture-grade materials and custom add-ons create cabinets that perform beautifully without sacrificing style. “
Because kitchen cabinets are often the most prized component of the room, “their design and aesthetics can make or break the entire room's overall appearance.” Therefore, it's important not to sacrifice quality for the sake of price. At the same time, kitchen cabinets don't have to break the bank. Indeed, quality, built-to-order cabinetry can be had for every budget.
Look for a kitchen cabinet manufacturer that offers a wide selection of door styles, optional storage solutions and decorative enhancements. That way you can customize the kitchen cabinets that fit within the needs of both your family and your budget. Wood species, finish, storage solutions and moldings will all factor into the overall cost of your kitchen cabinets, so selecting a kitchen cabinet manufacturer with a wide array of options is your best bet.
Another kitchen cabinet trend HGTV sees taking a firm hold in the marketplace is an overall one “toward furniture-grade cabinets.” This one is a direct offshoot of the function over style one. “Now consumers are turning their attention toward more particular aspects, such as pull-out waste cans, slide-out towel bars and pull-down shelves. This … points to an overall customization movement that puts as much emphasis on function as it does on form.”
A leading kitchen cabinet manufacturer will afford homeowners a unique and eclectic array of storage solutions. Sink base door storage units, Contempo floor mount wastebasket cabinets, stainless utensil trays, sliding towel bars, sink base door storage units, base wastebasket top mounts, paper towel holders, base wastebasket cabinets, sink base door storage units and top mount wastebaskets are just some of the kitchen cabinet add-on features that are appealing to today's homeowners.
According to a 2002 survey conducted by the National Kitchen and Bath Association, “Wood-finished cabinets are still the style of choice,” representing about 80 percent of all cabinets purchased. But as a final trend, HGTV points out that homeowners “are opting for a more casual appearance overall. Many of these have multi-step finishes and glazes to make them look like antiques that have weathered generations of use.” If this trend describes you, look for a leading kitchen cabinet manufacturer that offers a wide range of kitchen cabinet wood species, kitchen cabinet door shapes and kitchen cabinet wood finishes. Standard and premium finishes and glazes complement any design style.