Compensation Outlook for 2011
Tuesday, August 31st, 2010With signs of economic recovery, U.S. employers plan to adjust their compensation practices for 2011 in response to losing top talent after a year of pay freezes. According to Mercer’s 2010/2011 U.S. Compensation Planning Survey, more than 98% of U.S. companies plan to award base salary pay increases in 2011. Moreover, just 2% of companies are planning across-the-board salary freezes in 2011, compared with 13% in 2010 and 31% in 2009. Of the employers projecting to grant base salary pay increases, the average increase is expected to be 2.9% in 2011, up from an actual 2.7% in 2010. Unlike past years, expected salary increase levels for 2011 are even across most employee groups. However, more employers are taking a segmented approach to salary increase allocations and continuing to focus on high-performing talent.
Society for Human Resource Management – August, 2010