The projected salary budget increase matches what companies reported for 2012 and represents an increase from 2009
WAYNE, Pa.—Employers are projecting a three per cent increase for salary budgets, according to the National Salary Budget Survey conducted by Kenexa Compensation.
The projected salary budget increase matches what companies reported for 2012 and represents an increase from 2009, when salary budget levels fell to a record low 2.5 per cent for executives and non-exempt employees and 2.8 for managers and exempt employees.
However, overall salaries are still lagging behind pre-recession levels of 2008, the last time median increases were close to four per cent.
Salaried workers in biotechnology saw a 3.5 per cent increase and workers in software/networking received a 3.1 per cent raise.
Education, nonprofit and workers in government organizations and the construction industry experienced only a 2.5 percent salary increase.
The report also shows companies continue to increase the eligibility for variable pay, particularly at the executive level. This allows companies to budget for awards that are earned rather than taking on long-term commitments to compensate employees at a specific, predetermined incremental level.
The survey found 71 per cent of participating companies report their 2013 salary increase budgets will remain unchanged from 2012 and only 22 per cent project larger increases next year.
Since 2006, Wayne, PA.-based human resources service provider has surveyed U.S. and Canadian companies on their actual and planned salary budgets and compensation programs.