In a recent research conducted by Watson Wyatt, more than half of companies who have implemented salary freezes or reductions plan a reversal in the next six months, early into 2010.
Fifty-four percent plan to eliminate the freeze in six months, while 26% plan to do so in the next 12 months. At the same time, 6% plan to eliminate the freeze in 18 months and 5% will not reinstate salaries.
Of the companies that implemented salary reductions, 57% plan a reversal in the next six months, 20% in 12 months, 3% plan to reverse in 18 months, and 7% will not reverse the salary reduction.