Pay increases are only one way an organization attracts and retains talent regardless of the overall economy
Washington, D.C. (PRWEB) August 6, 2008
Results from the 35th Annual WorldatWork Salary Budget Survey, the largest survey of its kind, show pay budgets growing steadily from 2008 to 2009 in the U.S. and Canada. The actual increase in salary budgets was 3.9 percent in 2008 and is projected to rise again by another 3.9 percent in 2009 across all employee categories, regions and industries, according to the survey.
Key survey findings:
- Among U.S. major metropolitan areas, organizations in Washington, D.C. report the highest 2008 salary budget increases for all employee categories and industries: 4.0 percent. On the low end, employers in Cincinnati, Detroit, Minneapolis, Pittsburgh, and St. Louis report average pay budget increases of 3.7 percent. (See Table 1)
- U.S. organizations in nine states are increasing salary budgets at the national level of 3.9 percent; the rest are reporting below average increases. (See Table 2)
- In Canada, employers in the major metro areas of Calgary and Edmonton report the highest actual 2008 salary budget increases: 4.0 percent; employers in Montreal and Quebec report the lowest actual pay budget increases: 3.6 percent. (See Table 3)
- Nine out of ten employees (91 percent) in both the U.S. and Canada can expect to receive base pay increases this year.
- High performers can expect raises over 5 percent while below average performers can expect 2 percent or less.
"Pay increases are only one way an organization attracts and retains talent regardless of the overall economy," said Anne C. Ruddy, CCP, president of WorldatWork. "Organizations continually evaluate the attractiveness of their entire rewards package and develop new programs accordingly. They are investing in other areas of total rewards, such as employee development, training and work-life balance. For example, the number of organizations offering telework as a flexible work program is up significantly (40 percent) compared to a year ago."
After seeing salary budget increases sink to historic lows in 2003 and 2004 and climb slowly from 2005 through 2008, this year's study confirms that the growth in salary budgets is holding steady, an indication that labor markets are stable. The WorldatWork Salary Budget Survey is the most comprehensive salary budget survey with more than 2,700 organizations representing 13.6 million North American employees.
To review tables of top-level Salary Budget Survey data, go to the WorldatWork Salary Budget survey results.
Journalists and reporters may request a copy of the full survey report by contacting Marcia Rhodes at marcia.rhodes(at)worldatwork.org or by calling 202-315-5517 or 480-304-6885. All others, please contact WorldatWork Customer Services at 877-951-9191.
About the Survey:
Survey data was collected in April 2008 with a 3 percent margin of error. Survey respondents are WorldatWork members employed in the HR, compensation and benefits departments of mostly large North American companies.
Note to editors: A salary budget survey is different from a salary survey in that a salary survey compares salary data for specific positions. On the other hand, a salary budget survey is a benchmark used by employers and HR practitioners to support pay increase recommendations. Base pay increases may come from merit increases, cost of living increases and general increases (promotional increases are excluded). Salary budgets - the total amount of money allocated by an organization for all employee salaries - do not include other employment hard costs, i.e. medical/dental insurance, payroll taxes, 401(k) match, etc.
The Total Rewards Association
WorldatWork (worldatwork.org) is a global human resources association focused on compensation, benefits, work-life and integrated total rewards to attract, motivate and retain a talented workforce. Founded in 1955, WorldatWork provides a network of more than 30,000 members and professionals in 75 countries with training, certification, research, conferences and community. It has offices in Scottsdale, Arizona, and Washington, D.C.
Marcia Rhodes, APR
Phone: 202-315-5517 or 480-304-6885
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