Base pay set to increase in 2013 despite slow and uncertain economic recovery by approximately 3%. The latest results from three (3) surveys (Mercer, WorldatWork and the Hay Group) all predict an average raise in base pay of between 2.9 percent to 3 percent in 2013. The past annual pay increases were 2.1% in 2009, 2.3 % in 2010 and 2.7% both 2011 and 2012, according to Mercer.
Retaining key talent still remains a key challenge for organizations in 2013, according to Mercer’s 2012/2013 U.S. Compensation Planning Survey. Companies are still rewarding their top performers with greater-than-average increases in order to attract and retain their workforces. Mercer’s survey finds the highest-performing employees (8 % of the workforce) received average base-pay increases of 4.4% in 2012, compared to 3.4 % for the next highest level of workers (29%), 2.4 % for average performers (54%), 1% for low-performing workers (7%) and 0.1% for the lowest performers (2%), according to the survey.
The World-at-Work survey, finds the 3% U.S. projection for 2013 lags behind India, China and Brazil (10.7 %, 8.8% and 7.2 %, respectively). Spain (2.9%) and Japan (2.7 %) join the United States as the lowest projected salary increases in the WorldatWork survey. “Salary increases in growth markets such as India, China and Brazil remain strong again this year,” says Adam Gorensen, the organization’s global practice leader. “Although more and more companies are implementing integrated total rewards programs to attract and retain employees, cash remains king among employees. “As a result,” he says, “organizations are increasingly focused on improving employee engagement and creating a positive work environment for employees.”
References: Michael J. O’Brien, World at Work, Mercer, Hay
