Tighten your belts: employee pay raises will experience little change if any in 2008. The average salary budget increase for 2007 is 3.9 percent, an increase of 0.1% from last year, according to the 34th annual WorldatWork Salary Budget Survey (SBS).
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July 18, 2007
Scottsdale, AZ. - Tighten your belts: employee pay raises will experience little change if any in 2008. The average salary budget increase for 2007 is 3.9 percent, an increase of 0.1% from last year, according to the 34th annual WorldatWork Salary Budget Survey (SBS). Base pay increases may come from merit increases, cost of living increases and general increases (promotional increases are excluded). Salary budgets – the total amount of money allocated by an organization for all employee salaries – do not include other employment hard costs, i.e. medical/dental insurance, payroll taxes, 401K match, etc.
After seeing salary budget increases sink to historic lows in 2003 and 2004 and climb slowly from 2005 through 2007, this year’s installment indicates salary budgets may start to plateau. Participating organizations in the annual WorldatWork Salary Budget Survey are reporting an actual average total salary budget increase of 3.9 percent overall across all employee categories, regions and industries for 2007. WorldatWork’s annual Salary Budget Survey is the world’s largest and most comprehensive with more than 2,400 respondents.
"With merit increases remaining under 4%, managers will have to think more holistically in order to produce meaningful rewards," said Anne Ruddy, president of WorldatWork. "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."
WorldatWork Salary Budget Survey data will be released early next month and will include results for North American regions, major metropolitan areas, major industries as well as data by organization size.
Major metropolitan areas:
Atlanta
Baltimore
Boston
Chicago
Cincinnati
Cleveland
Dallas
Denver
Detroit
Houston
Los Angeles
Miami
Minneapolis
New York
Philadelphia
Phoenix
Pittsburgh
Portland
San Diego
San Francisco
San Jose
Seattle
St. Louis
Tampa
Washington, D.C.
Of the 25 major metropolitan areas covered in the survey, 10 expect salary budgets to stay the same or decline in 2008; the other 15 expect very minimal increases.
Major industry groupings:
Finance
Manufacturing
Public Administration
Retail
Service
Transportation/Utility
Wholesale
Organization size:
1-499
500-2,499
2,500-9,999
10,000-19,999
20,000+
Journalists and reporters interested in results for their specific area may contact Marcia Rhodes at e-mail protected from spam bots or 480/348-7285. All others, please contact Customer Services at 877-951-9191.
Survey respondents are WorldatWork members employed in the HR, compensation and benefits departments of mostly large North American companies. Combined, the survey’s 2,426 participating organizations represent more than 15 million North American employees.
Note to editors: A Salary Budget Survey is different from a Salary Survey in that a salary survey compares salary data for specific positions by title and location. On the other hand, a salary budget survey is a benchmark used by employers and HR practitioners to establish pay scales.
About WorldatWork®
The Total Rewards Association
WorldatWork (www.worldatwork.org) is an international association of human resource professionals focused on attracting, motivating and retaining employees. Founded in 1955, WorldatWork provides practitioners with knowledge leadership to effectively implement total rewards – compensation, benefits, work-life, performance and recognition, development and career opportunities – by connecting employee engagement to business performance. WorldatWork supports its 30,000 members and customers in 30 countries with thought leadership, education, publications, research and certification.
The WorldatWork group of registered marks includes: WorldatWork®, workspan®, Certified Compensation Professional or CCP®, Certified Benefits Professional® or CBP, Global Remuneration Professional or GRP®, Work-Life Certified Professional or WLCPTM, WorldatWork Society of Certified Professionals®, and Alliance for Work-Life Progress® or AWLP®.
Contact:
Marcia Rhodes, APR
Media Relations
WorldatWork
Phone: 480/348-7285
E-mail: mrhodes @ worldatwork.org
This press release was distributed through eMediawire by Human Resources Marketer (HR Marketer: www.HRmarketer.com) on behalf of the company listed above.
http://www.prweb.com/releases/2007/7/prweb540527.htm
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