92% of workers can expect salary increases this year
WorldatWork, an association for human resources professionals, released its 2006–07 Salary Budget Survey of North American salary budget data on August 2, 2006. Ninety-two percent of employees should get a raise this year, which represents an increase of about 4% across all sectors for salary budgets in Canada and the U.S.
This growth, which surpasses the Consumer Price Index, follows two years of unprecedented decreases in 2003 and 2004. Companies with fewer than 500 employees will see the largest increase, at 4.2% of the salary budget. The public sector is not far behind with a record increase of 4% after three years of nearly flat growth between 2002 and 2004.
The talent war is beginning to have a real impact on salaries. Companies reported using a variety of special means to keep key talent:
- Hiring bonuses – 69%
- Spot bonuses - 45%
- Retention bonuses – 35%
- Part-time employment with benefits – 28%
Variable pay, based on performance, is no longer reserved for sales representatives. Some 80% of companies use it, vs. 66% in 2001.
Forecasts for 2007 are just as positive, with projected average salary budget increases of almost 4%. The highest increase of 10.5% in 1981 remains unbeaten.
The 33rd annual WorldatWork Salary Budget Survey was conducted in April 2006. A total of 2,800 U.S. and Canadian human resources professionals participated.