Salary Increases Inch Up With Employers' Optimism
USA Today summarized results from several studies and concluded that the working class can have a slightly sweeter salary increase this year. Among the findings:
- Companies say 87% of employees will receive an increase in base pay this year, up from 83% in 2003, according to WorldatWork, a non-profit specializing in compensation and benefits.
- This year, employers have been giving an average total salary budget increase of 3.5%, and company projections for 2005 look slightly better, with a projected increase of 3.7%.
- Employers plan to grant average pay increases of 3.3% this year, the same as in 2003, according to Mercer Human Resource Consulting. But in 2005, employers are budgeting average increases of 3.5%. That's above the expected inflation rate next year of about 2.2%.
- Far fewer employers are freezing pay. According to Mercer, the number of employers reporting salary freezes for some of their employees fell to 5% in 2004 from 16% in 2002.
I am looking forward to the annual merit increase in September. Hopefully I will not be too disappointed.
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