Compensation experts are predicting modest but steady wage growth over the next few years as employers shake off the salary freezes, layoffs and low profits brought on by the recession.
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.
Still, a recent Forbes story says 2012 could be The Year of the Employee Backlash, as workers look for greener pastures after years of corporate slash and burn. Translation: Now’s the time to review your pay structure from a retention perspective.
Twelve pay trends to keep in mind:
1. An increasing focus on pay for performance. Employees who get the best results will reap the highest annual raises. “As a result, the gap between high-performing employees and those in the lower-performing categories is widening significantly,” says a new Mercer report (see chart below).
2. Alignment...(register to read more)
- Beware the tipping point: Setting up tip pool often requires expert legal advice
- Play it straight: When employee's complaints become irrational, stick with sound procedures
- The water cooler dies: Office gossip spreads faster online
- Put the brakes on out-of-control lawsuits! Stop retaliation before it starts
- Train managers on FMLA or risk double damages