Decreasing sales start to hit bonuses, pay raises
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A November survey of Midwestern companies found that 38 percent have seen a decrease in sales, and nearly half of those firms plan to decrease, delay or freeze their budgets for projected 2009 pay and merit increases.
MRA – The Management Association surveyed 465 member companies in Iowa, Illinois and Wisconsin about their recent results and plans. Eight percent said they have experienced an increase in sales, and 53 percent have seen sales remain constant.
Three-quarters of the respondents typically offer a year-end bonus. Fifty-two percent of that group said they plan to keep bonuses at the planned level, and 21 percent said they will lower bonuses. A fourth of those companies had not made a decision yet.
Fifty-five percent of the companies are manufacturers, and the rest are in the service, financial, health-care or other industries. Forty-five percent of the surveyed companies employ fewer than 100 people.