The Great Recession has left deep scars in the minds of many business owners, leading them to hold back on employee compensation even as conditions improve. According to several leading payroll processors that specialize in small businesses, employee pay has stayed virtually flat year over year, in contrast to previous years when generous, automatic raises were the norm.
Increases in base pay at small businesses are being granted only if both the employee and the company exceed expectations. The understanding that base pay would increase yearly is no longer a given. In many cases, additional compensation is given in the form of performance bonuses for tasks that increase revenues like providing a successful sales lead. Many owners have yet to achieve the level of profitability they had prior to the Great Recession and don’t want to risk the financial integrity of the company by increasing fixed expenses like base pay.Read the full article at The Washington Post.Read more Finance Watch articles.