Chilling Effect

The salary freezes implemented in 2009 may well carry over into 2010, but retention risks will remain low. A Towers Perrin survey conducted in August and again in December found a significant rise in the number of workers who value job security far more than pay levels, promotions or career development. The declines in employee expectations and mobility that occur in downturns create the conditions for resetting wages to the levels that existed at the end of the previous trough.

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Workforce Management, March 16, 2009, p. 25 — Subscribe Now!