Recession revisited: Is it time for cautious optimism on pay?

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in HR Management,Human Resources

by Jason Kovac

We had good news and bad news this summer on the compensation front. The bad news: Average corporate salary increases will be just 2.2% next year, the lowest in at least 3½ decades. The bright spot: That might be rock bottom, as HR execs are projecting a 2.8% increase in 2010.

That’s still a long way from the 3.8% increases that were standard for the past 10 or so years. Who knows when we’ll return to pre-recession compensation practices that virtually guaranteed every employee a raise every year? Perhaps we never will.

As hard as this recession has been on everyone, it has forced organizations to look at how to spend compensation budgets more efficiently and more effectively. What has shaken out is a new system of pay raises and bonuses that actually rewards employees for doing top-notch work rather than for simply showing up for work.

It turns out, that could be a practice that will endure, even ...(register to read more)

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