Number of Companies Planning to Reverse Salary, Hiring Freezes Jumps Sharply

Approximately half of the companies that froze salaries and hiring in the past year now plan to unfreeze them in the next six months, according to the latest update to an ongoing series of surveys by Watson Wyatt, a global consulting firm. Nevertheless, employers remain concerned about their ability, both currently and in the long run, to attract and retain critical-skill employees. Other findings from the survey include:

Thirty-seven percent of companies think their results have already bottomed out, compared to 27 percent in August.

For companies expecting to reinstate their 401(k) or 403(b) match, 70 percent will change it back to the original level. Thirteen percent will reinstate the match at a new, lower level, while 17 percent will vary it by year, based on company profits.

For companies expecting to make offers to new hires, 83 percent will do so for professional, non-managerial staff, followed by 71 percent for director, manager or middle management positions. Only 47 percent will be hiring for senior management or executive level positions.

Only 37 percent of employers plan to organize a holiday party in 2009, compared with 47 percent that organized one in 2008 and 70 percent in 2007. Two in five (41 percent) that are planning a holiday party have seen their budgets decrease.