The United States base pay increases are projected to average around 3 percent across industries and positions in 2014, with increased pay differentiation for high performers, say new forecasts by WorldatWork, Mercer, Hay Group and others.
Below is the projected 2014 increases that include the following salary-budget percentage increases worldwide:
Global Salary-Budget Trends
| Country | Actual 2012 | Actual 2013 | Projected 2014 |
| India | 11.2% | 10.5% | 10.9% |
| China | 9.1% | 8.2% | 8.5% |
| Brazil | 7.7% | 6.8% | 7.2% |
| Singapore | 4.3% | 4.2% | 4.3% |
| Australia | 4.0% | 3.7% | 3.8% |
| UK | 3.1% | 2.9% | 3.0% |
| Netherlands | 3.1% | 2.8% | 2.8% |
| Canada | 3.0% | 2.9% | 3.1% |
| France | 3.0% | 2.7% | 2.8% |
| Germany | 3.0% | 2.9% | 3.0% |
| United States | 2.8% | 2.9% | 3.1% |
| Spain | 2.8% | 2.4% | 2.5% |
| Japan | 2.6% | 2.4% | 2.5% |
| Source: WorldatWork 2013-2014 Salary Budget Survey. | |||
U.S. Salary-Budget Increases by Employee Category
| Category | Actual 2012 | Actual 2013 | Projected 2014 |
| Nonexempt hourly nonunion |
2.8% | 2.9% | 3.0% |
| Nonexempt salaried | 2.9% | 2.9% | 3.1% |
| Exempt salaried | 2.9% | 2.9% | 3.1% |
| Officers/executives | 2.8% | 2.9% | 3.1% |
| Source: WorldatWork 2013-2014 Salary Budget Survey. | |||
2013 Merit Increases Awarded by Performance Category
| Category | High Performers | Middle Performers | Low Performers |
| % of employees estimated to be rated in this category |
25% | 68% | 6% |
| Estimated average merit increase | 4.1% | 2.7% | 0.6% |
| Source: WorldatWork 2013-2014 Salary Budget Survey. | |||
Average Base Pay Increases by Performance Level
(based on U.S. companies with a five-point rating scale)
| % of Workforce | Average Pay Increase | |
| Highest-rated | 7% | 4.6% |
| Next highest-rated | 30% | 3.5% |
| Middle-rated | 54% | 2.6% |
| Low-rated | 7% | 0.9% |
| Lowest-rated | 2% | 0.2% |
| Source: Mercer, 2013/2014 US Compensation Planning Survey. | ||
References:
- Salary Budgets Projected to Hold Steady in 2014 Stephen Miller, 7/11/2013, shrm.org
- Keeping Salary Administration Programs Current, SHRM OnlineCompensation, June 2013
- Updating Salary Structure: When, Why and How?, SHRM OnlineCompensation, May 2013
- The Art of Setting Pay, HR Magazine, May 2013
- Make Way for Variable Pay, SHRM Online Compensation Discipline, June 2012
- Incentive Pay Tips and Pitfalls Shared, SHRM Online Compensation Discipline, June 2012
