With more companies in dire straits, raises, health insurance and 401(k) matches are vulnerable to being cut. If they're not already gone, they could be soon.
Many employers are frantically axing jobs in an effort to improve their bottom lines. Other companies are wielding a scalpel to whittle cost savings from employee perks. About half of companies -- 51% -- expect to increase their cost cutting this year and beyond, according to a recent survey.
Here's a look at where employers are likely to make cuts:
- Jobs, or through attrition
- Vacant positions
- Training - Helping employees to develop advanced skills usually helps the bottom line of a company. But on-the-job training is expensive and time-intensive, and immediate results are not always realized. About 35% of companies have reduced or eliminated training for employees, Watson Wyatt reported, and 15% are planning to. Keeping your skills up to date on your own, however, could help keep you employed.
- Health care - Premiums for employer-sponsored health insurance climbed to $12,680 annually for family coverage in 2008. Employees paid an average of $3,354 out of their paychecks to cover their share of the cost, according to a Kaiser Family Foundation survey of 2,832 companies.
- Travel
- Parties
- Salaries
- Merit increases
- Pension contributions
- 401(k) matches
What has your company done so far this year to reduce operating expenses? Please email me at wgstevens2@gmail.com with your comments.
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