One in 6 US employees will not receive a raise in 2021, according to top compensation advisory firm Willis Towers Watson

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One in 6 US employees will not receive a raise in 2021, according to top compensation advisory firm Willis Towers Watson
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  • Some 35% of the 705 U.S. employers surveyed by consulting firm Willis Towers Watson said they were reducing their salary increase budgets for 2021, with some firms citing budgetary restraints and weaker financial results from the pandemic. Salary increase budgets are where firms pull funds for bonuses.
  • The median salary increase expected is 2.6%, lower than the 2.8% median when Willis Towers Watson asked the same question a few months ago.
  • The survey found that one in six employees will not receive a pay raise in 2021. Some 84% of employers will deliver pay raises on schedule.
  • “The pandemic’s economic implications have led employers in virtually every industry to rethink their compensation plans and budgets for the coming year,” said Catherine Hartmann, North America Rewards practice leader, Willis Towers Watson. “For many companies, reducing salary budgets, and in some cases, suspending pay raises, was the most viable option, as they balance remaining competitive with maintaining financial stability.”
  • According to survey results, executives and management employees are much more likely to receive bonuses than hourly employees.
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