At what point do you have to do something?
At a recent conference that question was posed to us.
Actually the individual asked, "When you have had your salaries frozen for awhile, how long can you leave them frozen before you reach the point that you have to do something?"
Many organizations have instituted salary freezes during the recent downturn. Some have instituted freezes for one, two, or in this case three years. Depending on the source you reference, during the worst part of the recession as many as 40% of organizations instituted a salary freeze.
Because salary freezes were so widespread, it was easy to feel secure in thinking that everyone was experiencing a freeze situation. After all, misery loves company.
However, it is easy to forget that if 40% of companies instituted a salary freeze, then 60% didn't. And the duration of every freeze was not the same from organization to organization. Depending on your specific sector and the types of skills and talent you require in your organization, you could find yourself in a very uncompetitive situation.
While it is true that a multitude of factors (especially management practices) contribute to employee engagement and retention, don't be fooled into a false sense of security when it comes to compensation.
Read about the 5 key compensation considerations for coming out of the freeze...
About LSA Global
Founded in 1995, LSA Global is a leading performance consulting and training firm that helps high growth technology, services, and life-science companies create a competitive advantage by powerfully aligning their culture and talent with their strategy. Learn more about getting aligned
