Employees get Raises as Pay Freeze Thaws

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Salary increases are slowly trending upward toward pre-recession levels, according to the 38th Annual WorldatWork Salary Budget Survey. Participating organizations reported awarding at least some base salary increase to 88 percent of all employees in 2011 on average, compared to 86 percent of all employees in 2010, 80 percent in 2009 (all-time low), and 91 percent from 2006 to 2008. This year's 88 percent % figure shows not all organizations are fully recovered.
Depending on performance ratings, this year low performers can expect an average pay increase of 0.7 percent, middle performers 2.7 percent and high performers 4.0 percent. Only 3 percent of employers are planning across-the-board salary freezes compared to 43 percent in 2009 and 10 percent in 2010. The actual increase in salary budgets was 2.8 percent in 2011 and is projected to rise again by 2.9 percent in 2012, according to the survey.

"Unemployment rates may be playing a significant role in keeping salary budget planning at moderate levels," said Alison Avalos, CCP, research manager at WorldatWork. "The law of supply and demand is also at play: employers don't need to plan for high pay increases because there are more employees than there are jobs."

These were just a few of the conclusions drawn from the annual survey, the largest survey of its kind with 2,256 respondents representing 15 million U.S. employees. For more, click here.

Source: WorldatWork; www.worldatwork.org.
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