Newly released results from World at Work 2015-2016 Salary Budget Survey says that employers are using market-based increases. Salary Budgets will rise 3.1% for 2016 according to the World at Work survey.

Total U.S. Salary Budget Increases

The survey shows employers continue to differentiate pay increases based on performance.

2015SalaryMeritINcreasesAwarded

The survey also reviewed adjustments to salary structures by employee category.

Salary Structure Increases, by Employee Category

Incentive pay programs are usually budgeted separately from salary increases. The average amount budgeted for variable pay is a percentage of the total base salaries in that category. Non-cash recognition and rewards were one of the few variable pay categories showing a decline from 2014 to 2015, slipping from being offered by 51 percent of employers down to 49 percent. Spot bonuses in lieu of merit increases is on the rise.

Variable Pay Program Budgets, 2015 and 2016

Reference: (Miller, S.). Modest Gains Seen for 2016 Variable Pay Budgets, Salary Ranges. SHRM.org