Bay Area Employers Positive About Prospects for Their Own Organizations, CompAnalysis Survey Shows.

OAKLAND, Calif. -- There is encouraging economic news in the 5(th) Annual Greater San Francisco Bay Area Compensation Survey. Many may be surprised to learn that a broad cross-section of Bay Area employers reported they are currently sticking with plans to grant pay raises in 2010. In addition, 18% of the survey respondents feel that their own organization's prospects for 2010 are better than they were in 2009.

More than half of the organizations reported they froze at least some base pay increases, a dramatic increase from 18% reported in 2008. Similarly, 23% reduced some salaries during this time, up from 6% in 2008. CompAnalysis compiled data for the 5(th) Annual Greater San Francisco Bay Area Compensation Survey from 160 employers representing 34,356 employees in 11 Bay Area counties.

"Some employers were very negatively impacted and consequently froze and/or reduced salaries and wages. With average base pay levels expected to increase by about 2.5% next year, employers who previously froze pay now need a plan to re-establish competitiveness in 2010," noted CompAnalysis Managing Principal Shari Dunn. "Other employers not feeling the pinch so severely have continued to make regular pay adjustments."

Workforce Increases/Reductions

Not surprisingly, only 25% of employers reported plans to increase their workforce in the last half of 2009, down from the 39% that planned workforce increases in the latter half of 2008.

Workforce reductions are also significant. 13% of employers surveyed reported plans to reduce their workforce between July and December of 2009, compared to only 6% of employers who planned reductions during the comparable period in 2008.

Economic Perceptions

In addition to their plans to expand or reduce workforces and make changes in pay, employers were asked about their perceptions of the state of the Bay Area economy: these remained essentially unchanged from July 2008 to July 2009, with two-thirds characterizing the local economy in general as worse than it was one year prior.

CompAnalysis published its 183-page 2009 compensation and benefits report October 1. It includes specific local pay rates for 94 core job classifications across a broad range of industries. Survey available at www.salarysurveys.com.

CompAnalysis, an independent compensation and performance management consulting firm, has worked with more than 800 employers in a broad range of industries since 1980.