Highest Total Salary Budget Increases This Year Found in Washington Calgary and Edmonton
Highest Total Salary Budget Increases This Year Found in Washington, D.C., Calgary and Edmonton
August 6, 2008 — Results from the 35th Annual WorldatWork Salary Budget Survey show pay budgets growing steadily from 2008 to 2009 in the U.S. and Canada. The actual increase in salary budgets was 3.9% in 2008 and is projected to rise again by another 3.9% in 2009 across all employee categories, regions and industries, according to the survey.
Key survey findings:
Among U.S. major metropolitan areas, organizations in Washington, D.C. report the highest 2008 salary budget increases for all employee categories and industries: 4.0%. On the low end, employers in Cincinnati, Detroit, Minneapolis, Pittsburgh and St. Louis report average pay budget increases of 3.7%.
U.S. organizations in nine states are increasing salary budgets at the national level of 3.9%; the rest are reporting below average increases.
In Canada, employers in the major metro areas of Calgary and Edmonton report the highest actual 2008 salary budget increases: 4.0%; employers in Montreal and Quebec report the lowest actual pay budget increases: 3.6%.
Nine out of 10 employees (91%) in both the U.S. and Canada can expect to receive base pay increases this year.
High performers can expect raises above 5% while below average performers can expect 2% or less.
“Pay increases are only one way an organization attracts and retains talent regardless of the overall economy," said Anne C. Ruddy, CCP, president of WorldatWork. “Organizations continually evaluate the attractiveness of their entire rewards package and develop new programs accordingly. They are investing in other areas of total rewards, such as employee development, training and work-life balance. For example, the number of organizations offering telework as a flexible work program is up significantly (40%) compared to a year ago.”
After seeing salary budget increases sink to historic lows in 2003 and 2004 and climb slowly from 2005 through 2008, this year’s study confirms that the growth in salary budgets is holding steady, an indication that labor markets are stable. The WorldatWork Salary Budget Survey is the most comprehensive salary budget survey with more than 2,700 organizations representing 13.6 million North American employees.
Good to know that in spite of economic predicament that we are facing right now, yet, there's still good news. And that's good news for all employees since on this day of recession, an increase in salary and other benefits are really needed. Unemployment has been sweeping the world landscape like a plague. Unemployment tends to strike older workers first, as the landed "good old boys" tend to have higher salaries and are more expensive to keep on the payroll than the younger crowd. Those closer to retirement are easier to discharge, but find it increasingly harder to find new unemployment if it happens. Older workers that spent decades laboring in a career have to resort to positions much lower on the ladder, and some areas afflicted are not what many would think to be jobs on the firing line, such as attorneys and engineers. Doubtless they'd get personal loans to get out of the condition of unemployment.
Paul Weatherhead Program Manager Member Since: 5/1/2000 Comments: 467
Hey WorldatWork members! There's an interesting string of messages about the new W@W Salary Budget Survey on the W@W Compensation Bulletin Board. Topic is "Show Me the Money!" What do you think of the size of merit salary increases and variable pay? What do you think about the percentage of employees rated "high" versus "middle" performers? Check it out, and let us know what you think.
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