Employers Plan Modest Salary Increases

U.S. companies are planning an overall salary budget increase of 3.9 percent across all employee categories, regions and industries in 2007, according to a new survey by WorldatWork. Salary budget increases have risen one-tenth of a percent each year since 2004, according to the 34th annual WorldatWork Salary Budget Survey.

The modest 2007 increases — gains expected to plateau in 2008 — present a challenge for managers, said WorldatWork President Anne C. Ruddy. “With merit increases remaining under 4 percent, managers will have to think more holistically in order to produce meaningful rewards,” Ruddy said. "HR practitioners need to learn the art and science of ‘total rewards’ to leverage multiple factors to attract, motivate and retain talent. Compensation is one of the elements, but so are benefits, work/life, recognition and career development.”

Source: Society for Human Resource Management (SHRM)