Salary.com, a preferred partner with the Indiana Chamber and a leading SaaS provider of cloud-based compensation data software and analytics, has released new survey data that shows 66% of employers either reduced their workforce or negatively impacted employee pay in response to COVID-19, though just 10% of survey respondents expect the layoffs to be permanent.

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The survey revealed that 32% of employers laid off people (temporary or permanent), 10% saw a reduction in base pay and 21% reduced variable pay (including bonuses and commissions). In addition to the expectation that 90% of layoffs may be temporary, 65% of employers reported that base pay remained unchanged and 45% say they are leaving merit raises in place in 2020.

Salary.com conducted the COVID-19 Compensation and Benefits Impact Survey, which targeted 1,176 compensation managers across the U.S. and Canada, with 210 companies and organizations from Indiana participating, to better understand the full range of actions that employers and HR professionals that focus on compensation are taking in response to the COVID-19 virus outbreak — details not being uncovered in the weekly job loss headlines. The report provides further details on industries most impacted by the current crisis as well as how organizations are adjusting base and variable pay, and long-term compensation strategies.

Industries such as retail (brick and mortar), manufacturing, non-profits and health care — hit the hardest by the economic downturn — were more likely to take multiple negative actions that impacted employee pay. For all industries, 20% of employers eliminated planned merit raises for 2020 and another 24% are postponing merit increases.

The survey, fielded in mid-April, surveyed people working in compensation or total rewards roles within HR. Salary.com plans to update the survey data quarterly to help organizations with total compensation decisions. For information regarding the complete Salary.com survey catalog and how you can participate in future surveys, including the COVID-19 Compensation and Benefits Impact Survey as well as the 2020 Salary Budget Survey, click here.

About Salary.com

Salary.com is the leading SaaS provider of cloud-based compensation market data, surveys and analytics.  Founded in 1999, the company serves over 25,000 survey participant organizations, over 8,000 business-to-business software subscribers and over 30 million employees globally.  Salary.com is committed to helping organizations drive company success by aligning compensation practices with recruiting, performance and development initiatives through easy-to-access data and meaningful insights. For more information, please visit the Indiana Chamber web site.