Despite the Weak Economy and Rising Costs, Salary Increases Should Hold
Steady in 2009, According to a New Survey of U.S. Employers
Annual BLR®
Pay Budget Survey released
OLD SAYBROOK, Conn. (Business Wire EON/PRWEB ) August 20, 2008 --
The salary data contained in the Business
& Legal Reports, Inc. (BLR) annual BLR®
Pay Budget Survey Report, show increases are holding steady for 2009
despite a weak economy and rise in costs. BLR is an award-winning
publisher dedicated to supporting companies with up-to-date HR,
Compensation, Safety, and Environmental analysis, training, and
regulatory compliance information.
The BLR Pay Budget Survey questions employers on planned budgets
for merit and general salary increases in 2009, analyzing responses by
region, industry, and nationwide, then compiling information critical to
employers that want to make sure their compensation packages and annual
merit increases are compliant and competitive in the marketplace. This
year’s survey indicates that the average
planned merit increase for 2009 is 3.71%, slightly higher than the
actual average merit increase of 3.67% given in 2008. The average
budgeted general salary increase in 2009 is 3.47%, compared with 3.40%
given in 2008. Employers award merit increases to recognize an employee’s
achievements and accomplishments, while general increases are typically
based on cost of living increases.
Management and Construction Industries Projected to Receive Much
Larger Increases
Employees in the Management industry will see merit increases averaging
5.7% and general increases around 4.0%. Exempt workers in the
Construction industry are projected to receive average merit increases
of 4.7% and general increases of 3.9%. Among other industries expected
to give higher-than-average increases is Government, as depicted in the
table below, a sample of the Merit and General Increases by Industry
Planned for 2009 findings table included in this year’s
report. Additional industries surveyed and depicted in the full table
include Agriculture, Health, Manufacturing, Other Services, Real Estate,
Recreation, Retail/Wholesale, Transportation, and Utilities.
|
Merit and General Increases by Industry
Planned for 2009
|
|
|
|
|
Exempt
|
|
Nonexempt Office
|
|
Industry
|
|
|
Merit
|
|
General
|
|
Merit
|
|
General
|
|
Accommodation
|
|
|
3.8%
|
|
3.7%
|
|
3.6%
|
|
3.4%
|
|
Construction
|
|
|
4.7%
|
|
3.9%
|
|
4.5%
|
|
4.3%
|
|
Education
|
|
|
3.5%
|
|
3.3%
|
|
3.6%
|
|
3.3%
|
|
Finance/Insurance
|
|
|
3.9%
|
|
3.8%
|
|
3.7%
|
|
3.5%
|
|
Government
|
|
|
4.0%
|
|
3.3%
|
|
3.7%
|
|
3.3%
|
|
Management
|
|
|
5.7%
|
|
4.0%
|
|
5.8%
|
|
3.5%
|
Larger Merit Increases Planned for Western Half of US
The Central/Rocky Mountain/Southwest and Far West regions of the country
are slightly above the average, at 4% for exempt employees and 3.8% for
nonexempt office employees. Employers in the East Central part of the
country are forecasting the lowest merit increases for 2009, with exempt
employees projected to receive average increases of 3.6% and nonexempt
employees 3.5%.
Employers face numerous challenges in Compensation Planning
According to BLR Compensation expert Catherine Moreton, J.D., economic
pressures and rising costs are likely effecting employers’
compensation budgets for 2009. “Employers find
themselves in an unusual situation,” says
Moreton, managing editor of BLR HR and Compensation publications. “The
economy is weak and some believe we are in a recession. Unemployment is
on the rise. Yet, employers are concerned that they won’t
be able to hire and retain employees with the talent and experience they
need now that the Baby Boomers are beginning to retire. Add to the mix
that employees are struggling with big increases in gas and food prices,
and it isn’t surprising that employers have
decided to hold salary increase budgets steady for 2009.”
To purchase the 2009 Pay Budget Survey, with detailed analysis of
this year’s results, please visit www.BLR.com/2009/PayBudget
or call 800-727-5257
About Business & Legal Reports, Inc.
Business & Legal Reports, Inc. (BLR®)
is an award-winning publisher dedicated to supporting companies with
up-to-date HR, Compensation, Safety, and Environmental analysis,
training, and regulatory compliance information. Founded in 1977 with a
mission to provide executives and decision makers with reliable,
easy-to-understand analysis of the ever-increasing and complex state and
federal laws, BLR delivers online services such as HR.BLR.com,
Compensation.BLR.com,
Safety.BLR.com,
Training.BLR.com
and Enviro.BLR.com
as well as popular Web destinations for professionals such as the HRDailyAdvisor.BLR.com,
SafetyDailyAdvisor.BLR.com
and HRChallenge.BLR.com.
BLR also publishes highly regarded state compliance services such as What
to Do About Personnel Problems in [Your State],
Employee Compensation in [Your State],
and Environmental Compliance in [Your State]
as well as best practice newsletters, benchmark surveys, training
materials, and books for more than 300,000 companies and their employees
worldwide. For more information, contact BLR at www.BLR.com
or call 1-800-727-5257.
See the original story at: http://eon.businesswire.com/releases/increase/merit/prweb1231084.htm
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