Although many economists have predicted the U.S. may see a very modest economic improvement in 2010, pay increase budgets have continued to decline over the past year. The newly released 2010 Compensation Data Services survey results show pay increase budgets have fallen to 2.2 percent, down from 2.5 percent in 2009. Little change is expected over the next year, as service organizations predict a slight uptick in 2011 to 2.5 percent.
"With a slow economic recovery expected, service organizations are continuing to make conservative compensation choices," said Amy Kaminski, director of marketing for Compdata Surveys, the nation's leading compensation and benefits survey data provider. "Although keeping current employees on staff is a top concern during the jobless recovery predicted by most economists, increasing pay will continue to be a difficult priority until an upswing in the economic climate becomes more visible."
According to the survey, pay increase budgets vary within the industry as accounting firms had the highest budget, 3.3 percent. Engineering firms followed at 3.0 percent. Business services and technology and data processing organizations reported pay increase budgets of 2.6 and 2.2 percent, respectively. Media respondents had the lowest pay increase budget, 1.1 percent. Accounting firms are projecting the highest pay increase budget in 2011 at 4.0 percent, with media projecting the lowest, 1.8 percent.
The 2010 Compensation Data Services survey results also show pay increase budgets are consistent across different regions of the country. Service organizations in the East and Midwest reported pay increase budgets of 2.2 percent. This is closely followed by organizations in the South and West at 2.1 percent. Respondents in the West are projecting the highest pay increase budget for 2011, 2.6 percent.
About the Survey
Compensation Data Services 2010 contains data on nearly 100 industry-specific job titles and more than 250 benchmark titles ranging from entry-level to top executives. Data is collected annually from service employers across the country. The results provide a comprehensive summary of pay data, benefit information and pay practices with an effective date of January 1, 2010.
Compdata Surveys is the nation's leading compensation and benefits survey data provider. Thousands of U.S. organizations provide data each year ensuring the reliability of our results. Compdata Surveys has been providing comprehensive data at affordable prices to organizations from coast to coast since 1988. For further information about their compensation and benefits surveys, contact Amy Kaminski at (800) 300-9570.
