two stacks of coins According to Gallagher’s 2019/2020 Salary Planning Survey Report, 39 percent of employers are now relying on variable pay for at least one employee group. (Photo: Shutterstock)

The economy is good right now, but there are rumblings of a recession, and employers are preparing for the possibility by taking a close look at their payroll expenses right now. Rather than increase the salaries of their employees, bosses are switching tactics to better keep yearly increases in check.

According to a report from Arthur J. Gallagher & Co., in an effort to combat rising health insurance costs and keep salary increases from rising above 3 percent, employers are relying on such perks as spot bonuses, variable compensation and incentives coming into play.

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Marlene Satter

Marlene Y. Satter has worked in and written about the financial industry for decades.

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