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Benefits August 2, 2004
Pay Raise Odds Rise – Some
August 2, 2004 (PLANSPONSOR.com) - Your odds of
getting a base pay boost this year are better than last,
according to a new survey.
Reported by Nevin E. Adams
Organizations are indicating that 87% of employees will receive an increase in base pay this year, up from 83% in 2003, according to the 31st annual WorldatWork Salary Budget Survey (SBS). Base pay increases may come from general increases, merit increases, or cost of living increases, (promotional increases are excluded).
Participating organizations in the annual SBS (2,774 WorldatWork members) are reporting an actual average total salary budget increase of 3.5%, somewhat lower than the 3.7% increase anticipated last year (see WorldAtWork: Salary Budgets Hold Steady in 2004 ). Survey respondents – WorldatWork members who are employed in the compensation and benefits departments of mostly large companies in North America – are projecting a projected 3.7% average budget increase for 2005.
Performance Link
Most companies say they will link pay to performance this year – 77% plan to, compared with 75% in 2003, and 66% in 2001. However, a recent WorldatWork study suggests that the benefits of doing so are limited (see Study Questions Pay-for-Performance Effectiveness ).
Combined, the survey’s participating organizations represent approximately 12.7 millionemployees, according to WorldatWork.