Steven E. Gross, a U.S. compensation expert at New York-based William M. Mercer Consulting, has been getting lots of phone calls lately from clients at large, publicly traded companies. These addled human-resources chiefs have been consumed with one question: If they cut raises to help defray the costs of runaway hikes in health care―an unpopular trade-off they can consider only because of the lousy job market―how much will employee morale suffer?
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