Compensation experts are predicting modest but steady wage growth over the next few years as the country continues to shake off the salary freezes, layoffs and low profits brought on by the recession.
Still, the average pay raise will be modest this year—around 3%, according to a handful of employer surveys. By contrast, raises averaged about 4% from 2005 to 2008, just before the economy tanked.
Wage stagnation could affect many workers’ long-term earning potential. Jeff Blair, a pay expert with the Hay Group consulting firm, predicts “employees’ pockets will likely be permanently affected by the great recession.”
Here are a dozen pay trends to consider as your organization weighs how to structure compensation in an age of diminished expectations.
1. An increasing focus on pay for performance
That means employees who get the best results will reap the highest annual raises. And it means low-performing employees will get bel...(register to read more)