According to a survey by Mercer of more than 100 countries, 73% plan to reduce pay rises in 2009 from those originally budgeted for and 60% are expected to reduce bonus payments.
Almost one in five (17%) or organisations are considering reducing the level of employer contributions into pension schemes. But 84% said they would not be making any reductions to their health or group benefits to cut expenses.
More than a third (35%) also plan to reduce the numbers in their workforce.
Patricia Milligan, Mercer's chief markets officer, said: "Many multi-national companies have been facing rising cost pressure throughout 2008 and in recent months have been managing compensation costs and workforce levels aggressively while trying to keep employees engaged and productive,
"But our survey shows - at least as a group - most of these companies have refrained from taking severe and broad-based steps. Such drastic actions may include very deep workforce cuts, across-the-board salary freezes, and reductions in defined-contribution plan contributions or elimination of certain health benefit programmes."
HR to slash services spend
Nearly two thirds (62%) of employers are likely to make reductions to planned investments in HR services and 75% will not be investing any additional funds in HR in 2009.
