Workscape Institute

In a recent study about Total Rewards management and the “soon coming” economic upswing, it’s clear that people think that the economy will improve, but exactly when is still up for debate.  The economy has aspects of a self-fulfilling prophecy, as seen by examples such as the consumer confidence index, so these perceptions can powerfully affect its future direction.

Follow up:

Asked when their organizations will experience an upswing in business due to an economic recovery, 38% of companies with fewer than 500 employees responded that they’d see improvements within 0 to 6 months.

Other respondents were optimistic that the economy would improve as well, but smaller companies were generally optimistic that the recovery would start soon, whereas larger companies showed two trends.  Companies of 5,000 employees and above were either fairly optimistic or much more cautious, with little in between.  For example, a mere 6% of companies between 5,000 and 10,000 employees predicted that they would see business improve in the 6 to 9 month time frame.

According to the survey data, a substantial percentage of larger companies are still planning to keep their belts tight for another 12 months.  This is an interesting contrast to surveys of economists that find growing confidence in a 2010 recovery.

As this survey was focused on Total Rewards and how companies will be dispensing compensation and benefits, the outlook appears sunnier this year for employees of smaller organizations when it comes to increases, bonuses and co-pays.