Preliminary results from the annual WorldatWork Salary Budget Survey show pay budgets growing steadily from 2008 to 2009 in the United States and Canada.
The actual increase in salary budgets was 3.9 per cent in 2008 across all employee categories, regions and industries according to more than 2,700 organizations polled, and is projected to rise again by 3.9 per cent in 2009.
For the third consecutive year, participating organizations are reporting to WorldatWork that the vast majority (91 per cent) of employees can expect to receive an increase in base pay this year. Base-pay increases may come from general increases, merit increases or other increases, excluding promotional increases.
The survey also finds employers are paying for performance as well — high performers can expect raises of more than five per cent while below-average performers can expect two per cent or less. Survey results indicate very few employers are planning zero raises.
After seeing salary budget increases sink to historic lows in 2003 and 2004 and climb slowly from 2005 through 2008, this year’s study confirms the growth in salary budgets is holding steady, indicating labour markets are stable.
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