Tags: Coronavirus | Financial Markets | Money | Polls | employees | companies | employers

30 Percent of Companies Cut Employees' Pay in Pandemic

a coronavirus impact graphic showing a declining stock market
(Dreamstime)

By    |   Monday, 06 July 2020 04:54 PM

Thirty percent of employers reduced the salaries of their workers due to the coronavirus pandemic, according to a survey released Monday from outplacement firm Challenger, Gray & Christmas, Fox Business reported.

"It used to be that companies would do everything they could to avoid cutting pay – now they try to avoid layoffs, which can hurt morale, lead to survivors' guilt, and create anxiety, with employees wondering who will be next," Challenger firm senior vice president Andrew Challenger said in a statement.

He added, workers might tolerate reductions in salary more easily, because "working from home may have fewer costs for employees, such as avoiding commuting expenses."

Fifty-five percent of employers who reduced pay said it enabled their companies not to lay people off, according to the study, which was conducted between June 11 and June 20.

The cross-industry survey was conducted among 150 human resources executives at American companies.

Some companies say they are ending the reductions in pay or even repaying employees what they lost.

For example, Great Britain-based global insurance firm Aon is continuing a 50% temporary salary cut for some executives, but is repaying its other workers after slashing their wages by up to 20%.

According to an SEC filing, Aon will "repay colleagues in full, plus 5% of the withheld amount" and will not lay off any of its 50,000 employees because of the coronavirus pandemic.

© 2020 Newsmax. All rights reserved.


   
1Like our page
2Share
US
According to a survey released Monday from outplacement firm Challenger, Gray & Christmas, 30% of employers reduced the salaries of their workers due to the coronavirus pandemic, Fox Business reported.
employees, companies, employers, pay, pandemic, layoffs, furlough
231
2020-54-06
Monday, 06 July 2020 04:54 PM
Newsmax Media, Inc.
 
Newsmax TV Live

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved