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)
- Trouble-free terminations: 5 smart strategies for managers
- Some computer jobs exempt from EPA/FLSA protection
- DOL teams up with private lawyers to encourage FMLA, FLSA lawsuits
- Go ahead and trim the tree--while keeping your party liability-free
- HR detective: How to solve the classic 'he said/she said' mystery