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7 20, 2011

WorldatWork, a global human resource management non-profit firm, has recently released initial results for
its annual Salary Budget Survey conducted in April 2011 with more than 2,200 U.S. firms. The Survey’s results are showing that salary increases will remain tight through 2012 at below 3.0%.

 Prior the Financial Crash of September 2008, average salary increases were typically running around 4.0% for several previous years. Although salary budgets tumbled dramatically in late 2008 and throughout 2009, 2010 witnessed a recovery for salary budgets. Budgets, however, have remained below 3.0% for both 2010 and 2011. With the WordatWork results, it appears salary budgets will still be staying somewhat below 3.0% for 2012.

The projections for 2012 are up slightly from 2011′s actual salary increase figures which are currently coming in at 2.8% (mean) and 3.0% (median) in every category except the non-exempt hourly non-union where the mean increase actual is at 2.7%.

In general, as long as the economic recovery continues to be slow and uncertain, employers are going to continue to be very conservative when it comes to increasing salaries and giving raises. Also, although the situation where significant numbers of employees are not receiving any pay increases appears to be over for now, a quick return to pre-2008 budget levels seems unlikely given the modest rate at which budgets are recovering. 07-09-2011. Summarized from WorldatWork 2012 Salary Budget Survey.

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