What Goes Up Comes Down – Even Salaries

You’ve heard the old phrase: “What goes up must come down”, but most people don’t like to think that it would ever apply to their salary level, and in most cases – and in a “normal” economy, it wouldn’t. However, in this “great recession”, many people are seeing just that – a lower salary than a year or two earlier, especially new college graduates. The declines, seemingly small at first glance, could have even greater negative consequences, according to a report published by the National Association of Colleges and Employers (NACE).

Its Fall 2009 Salary Survey report shows that 2009 graduates with bachelor’s degrees received an average starting salary offer of $48,633 or 1.2 percent below the average $49,224 offered to new graduates a year earlier.

Parts excerpted from the December 2009 issue of HR Magazine.

Workers’ Engagement and Expectation Levels Drop

Cost cutting actions by U.S. employers in 2009 have contributed to a sharp decline in the morale and commitment of their workers, especially top performers according to a survey by consultancy Watson Wyatt and World at Work.

The survey found that employee engagement levels among all employees dropped 9 percent since 2008 and have plunged close to 25 percent among top performers. Additionally, 36 percent of top performers say their employer’s situation worsened over the past year; the number who would recommend others take jobs at their company has declined by nearly 20 percent.

“The fallout from the actions employers have taken in response to the recession is now coming to light, and it is significant,” said a global director of strategic rewards at Watson Wyatt. “Having less engaged and committed workers is a major concern for employers. This could have a long-lasting and detrimental impact on productivity, quality and customer service, as well as an increase in the risk of companies losing their best employees.”

The survey was conducted in May and based on responses from 1,300 full-time workers at large U.S. employers.

Excerpted from HR Magazine, November 2009

Disclaimer: Posts on this blog are for information only, and are not legal advice.