Page 122 - Appreciating Organization's Biggest Assets

when the economy will recover and between 2.6 percent and 3 percent,
when a COVID-19 vaccine might according to Mercer’s research. But
become broadly accessible. They sectors will be affected unevenly, just
are also contemplating the role as they were in 2020. While other
of compensation in retaining top industries were severely impacted
performers, who are more valuable by the economic downturn, online
than ever in this unstable climate. retailers saw record-breaking sales as,
According to Mercer study, when for example, homebound customers
the novel coronavirus shut down avoided stores and chose delivery.
sizable portions of the economy last The U.S. economy shed a net of 9.6
spring, one-fourth of companies million jobs between September
reduced pay (mostly temporarily). 2019 and September 2020. (not
During those early months of including agricultural jobs). A
2020, as the pandemic was just disproportionate 8.6 million of
starting to be felt in the U.S. but those were service positions, with
not yet understood, businesses 3.6 million in leisure and hospitality,
weighed whether to stick with their according to the Bureau of Labor
compensation plans. According Statistics (BLS).
to Mercer, 68% of them moved Some workers in hard-hit
ahead with merit pay increases and companies experienced less growth
79% paid out bonuses as expected. in their hourly wages than national
According to the consultancy, averages, according to the BLS’s
overall compensation increased by Current Employment Statistics.
approximately 3% in 2020, which The average hourly wage in the
is comparable to the growth rates recreation and hospitality sector
observed over the previous seven to increased by just 15 cents to
eight years. $14.78 between September 2019

However, a survey report from and September 2020. While non-
Gallagher found that the average farm workers in production and
pay rise in 2020 will only be 2.5 non-supervisory positions saw an
percent. increase in their average hourly pay

The COVID-19 pandemic’s from $23.70 to $24.79.
effects on pay will still differ by The pandemic’s effects are
sector, location, and even position already having an influence on
within companies in 2021. future choices regarding general

Company leaders anticipate to compensation strategies. Incentive
increase compensation in 2021 by plans at some companies that

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