An increasing number of companies that instituted cutbacks to employees' compensation or benefits amid the economic slowdown say they plan to reverse those cutbacks in coming months, according to a series of surveys by human resources consulting firm Watson Wyatt.
The survey found that 33% of companies that have frozen salaries said in August that they plan to reverse that move in the next six months, up from 17% in June. Forty-four percent plan to reverse salary cuts in the next six months, up from 30% in June, and 24% plan to reverse reductions to 401(k) matches, up from 5% in June, according to the survey of 165 large employers.
Other changes to benefits may prove more resistant to change: 66% of companies that boosted the portion of healthcare premiums paid by employees say they don't plan to reverse that change.
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