More companies delay pay hikes and hiring

Pay cuts affecting executives have also been implemented.

Companies delaying or cancelling salary increases for employees grew to 20.4% in April from the previous 8.2% in March, according to a pulse survey from professional services firm Aon.

Companies that reduced salaries on a voluntary basis reached 10.7%, the same percentage as those that carried out involuntary pay reductions, which mostly affected executives. Roughly 33% of firms are cutting pay across their full workforce.

In addition to delayed pay hikes, the report also stated that 30% of companies implemented hiring freezes, followed by 6% who delayed hiring plans.

Furthermore, 4% of the respondents laid off staff, whilst 8% have furloughed employees. Another 21% are actively considering such actions. Only 16% of companies stated that they will proceed with their hiring plans, followed by 1% of firms that have accelerated hiring.

Meanwhile, only 1% of companies have suspended employer matches, profit sharing, and contributions for defined contribution retirement plans, whilst 4.1% of companies have reduced paid leave benefits. In addition, only 12% of companies have additional compensation programmes in place, with another 15% of firms actively considering such actions.

Further broadening its cost-cutting initiatives, 59% of the respondents admitted that they reduced spending on contractors, whilst 42% postponed employee training programmes.