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Chicago-Area Employees Can Breathe Easier;
Pay, Hours, Benefits Likely to Stay Same or Increase - The Management Association
About Us
Chicago-Area Employees Can Breathe Easier;
Pay, Hours, Benefits Likely to Stay Same or Increase
FOR IMMEDIATE RELEASE
February 17, 2010
Contact: Lisa Soard
312-251-9929
lsoard@ksapr.com
Survey: Chicago-Area Employees Can Breathe Easier; Pay, Hours, Benefits Likely to Stay Same or Increase
Management Association Survey Shows Most Businesses Confident 2010 Will Be Better than 2009
DOWNERS GROVE, IL – Chicago-area business owners and managers say the worst of the Great Recession is over.
A majority of companies predict they won’t cut employees’ hours, pay or 401(k) contributions this year, according to the Chicago Area Economic Conditions Survey of Employer Practices and Plans for 2010 conducted by the Management Association and released today.
In fact, 31 percent of businesses say they’re likely to give raises in 2010 and 23 percent expect to hire new employees or call back former workers from layoff, according to the study, which surveyed more than 200 city and suburban businesses in January.
Almost half of businesses surveyed said they think the economy is getting better and 61 percent expect their organization’s performance to be better than last year, the most positive results since the quarterly surveys started in December 2008.
“Business owners are optimistic, but cautious,” said Mary Lynn Fayoumi, president and CEO of the Management Association. “They used many creative measures – furloughs, pay freezes and elimination of executive perks – to avoid additional layoffs during the recession. Companies are careful and will pick and choose which options to bring back.”
A majority of employers predict they will keep staffing, pay and benefits at the 2009 levels, or, if they increase a benefit, it won’t match the pre-recession level. For example, 25 percent of employers say they will increase base compensation, but only 6 percent will restore it to previous rates. And only 12 percent said they plan to cut their number of workers in 2010, either through layoffs or attrition.
Companies also report strong morale among employees. For example, 56 percent of businesses said there was no change in morale because of the recession and 16 percent said morale is higher than ever.
“It’s a sign that employers are doing the right things,” Fayoumi said. “Employees understand that many employers did everything they could to keep businesses going during a severe recession.”
The Management Association surveyed a diverse mix of companies, split almost evenly between those with more than 100 workers and those with less. Just under half of the participants are manufacturers, while 33 percent are in the service sector and 21 percent are non-profits.
Editor’s Note: For more information about the survey, you may visit http://www.hrsource.org/about-us/press-room/article-february-11-2010-economic-outlook-of-employers-continues-to-improve.aspx. The news media can sign up for access to this survey and others from the Management Association by joining the association’s Press Room. Contact Kevin Menzer at kmenzer@hrsource.org.
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The Management Association, which serves about 1,000 companies, is the trusted source of practical human resource expertise for businesses from one to 3,500 employees. The Management Association’ member businesses are a diverse group, including manufacturers, service organizations, nonprofits, financial institutions and public employers throughout the Chicago area.
