Many employers are trying to tempt employees with benefits schemes as the levels at which pay increases are not sufficient enough. The survey was carried out by Aon Hewitt and found that more employers are pushing incentives like group health, employee assistance programmes and gym memberships.
The survey found that the increase in money over the last six months remained unchanged for the last two business quarters at 3.2 per cent. Although the increase is above what the countries inflation was during the same six month period. The Customer Prices Index hit a high of 5.2 per cent by September last year although this was lower than the current CPI rate of 3.6 per cent.
Many companies are still trying work through challenges that the current recession is providing and this means companies are no longer able to provide the salary inflations that were the norm. By incentivising staff to join group health schemes and providing gym memberships they feel that their staff will feel better about themselves in the long run and feel the benefits, albeit not financially.
It was noted in the survey that there has become a growing feeling amongst employers the inflation rates would take a tumble, all with the exception of the UK. It was thought that salary increase budgets were slightly higher across Western Europe also.
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