Over the last few years, it seems as if salary increases have gone the way of dinosaurs as companies still struggle to recover in a new economic climate. While there will always be a focus on performance improvement, added compensation has been a topic that executive teams don’t want to discuss.
While companies grow, adding more employees to their numbers, they must take steps to retain the workers who make them profitable. As of this year, the US Department of Labor – Bureau of Labor Statistics advises that, “median annual salary among the nation’s 106.6 million workers is now about $40,560.” Giving the American workforce what they deserve in terms of consistently increasing salary, benefits, and work opportunities is long overdue for many organizations.
Workforce Surveys Show Positive Salary Increases for 2015
Good news is on the horizon as a new study released by WorldatWork indicates bigger salary increases are on the way for millions of US workers. The 2014-2015 Salary Budget Survey, in which WorldatWork members from mostly large US companies were polled, forecasted that pay increase budgets are on the upswing. For 2015, average salary increases are expected to top 3.1 percent, which is up from 2.9 percent in 2013. A follow up survey to validate these numbers showed that 85 to 90 percent of all organizations are looking at between 2 to 4 percent pay increases for all employees.
Planning for Salary Budgets for Next Year
Now, rather than with the performance review rush period, is the best time to start planning your salary budgets for 2015. Luckily, Payscale offers a great resource for human resource teams to accomplish this. Our special white paper called Budgeting walks you through the steps to accomplish a winning salary and compensation budget for your employees. You will be able to:
- Start with a salary design using current salary data gathered by our experts
- Identify any potential compensation inequities and solve them before they become problems
- Understand what you want to reward your employees for and how to do this
If your organization wants to remain an employer of choice for the coming years, then it’s important to note that salary increases are on the map for 2015. Get a head start and download this FREE resource today.