February 4, 2009 - 3:40am
Over 1,000 employers in the U.S. were surveyed if they are planning to change their salary budget projections in accordance with the current economy environment. The results of the study conducted by WorldatWork showed that companies plan to lower their 2009 salary budget increase projections across all employee categories, industries and regions.
This year average salary budget increases will be 3.1% against 3.9% when data was first collected in April 2008. Still, 77% of employees can expect their base pay to rise which will depend on where they work. The largest projected salary budget increases of 3.1% are planned in Philadelphia, Pittsburgh, San Francisco and Washington, D.C. As for increases for officers and executives 17% of the polled reported 0 salary budget increases in December 2008 in comparison with 3% in April 2008.
The data for the study titled ‘WorldatWork Special Update: 2008-09 Salary Budget Survey’ was collected in early December after the tightening of credit markets and president elections. Other findings in the study show that 51% of all respondents characterized their organization’s 2008 year-to-date (YTD) financial performance as worse than 2007 with only a quarter saying their organization was performing better than the year before. Over 50% of the institutions that plan to minimize their 2009 salary increase budgets explained that recent or anticipated decline in business was the reason for change.
This year average salary budget increases will be 3.1% against 3.9% when data was first collected in April 2008. Still, 77% of employees can expect their base pay to rise which will depend on where they work. The largest projected salary budget increases of 3.1% are planned in Philadelphia, Pittsburgh, San Francisco and Washington, D.C. As for increases for officers and executives 17% of the polled reported 0 salary budget increases in December 2008 in comparison with 3% in April 2008.
The data for the study titled ‘WorldatWork Special Update: 2008-09 Salary Budget Survey’ was collected in early December after the tightening of credit markets and president elections. Other findings in the study show that 51% of all respondents characterized their organization’s 2008 year-to-date (YTD) financial performance as worse than 2007 with only a quarter saying their organization was performing better than the year before. Over 50% of the institutions that plan to minimize their 2009 salary increase budgets explained that recent or anticipated decline in business was the reason for change.