NEW YORK, Aug. 27 NY-Conf-Board-Survey
NEW YORK, Aug. 27 /PRNewswire/ -- Salary increase budgets average 3.80 percent in 2008 across non-exempt, exempt, and executive employee categories, while salary increase budgets for non-exempt hourly employees come in lower at 3.70 percent, The Conference Board reports.
For 2009, the median budget for salary increases is projected to be 3.75 percent for both non-exempt salaried and hourly employees. The median salary increase budget projections for exempt and executive employees are higher at 3.80 percent for exempt and 3.90 percent for executives.
The information for this report was gathered from over 350 companies surveyed in April and May of 2008. Among the 250 companies that responded both last year and this year, some 35 percent report lower actual 2008 salary increase budgets than they projected last year for executives and exempt employees.
"Companies are responding to a sluggish economy by remaining disciplined on labor cost increases," says Charles Peck, Compensation Specialist with The Conference Board. "They are aided in this resolve by moderate inflation." The Conference Board currently projects a 2.7 percent rise in inflation for 2008 and 3.4 percent for 2009. This means the typical employer is budgeting for salary increases just slightly ahead of inflation in 2009.
Across industry categories, Diversified Financial Services reported the highest increases in 2008 for all employee categories, while Trade reported the lowest. The highest projected increase for 2009 was reported by Consulting Services, while Trade was again the lowest.
Definition
Salary increase budgets refer specifically to the pool of money that an organization dedicates to salary increases for the coming year. It is represented as a percentage of current payroll generally; the salary increase budget is calculated using a predetermined total percentage of base pay (excluding overtime, bonuses, etc.). The budget is used for awarding merit or performance increases to individual employees, as well as for pay adjustments such as promotional increases. Salary increase budgets can also include scheduled "step" increases or salary increases that have been pre-determined via individual contracts or collective bargaining agreements.
The Conference Board
For over 90 years, The Conference Board has created and disseminated knowledge about management and the marketplace to help businesses strengthen their performance and better serve society. The Conference Board operates as a global independent membership organization working in the public interest. It publishes information and analysis, makes economics-based forecasts and assesses trends, and facilitates learning by creating dynamic communities of interest that bring together senior executives from around the world. The Conference Board is a not-for-profit organization and holds 501(c)(3) tax-exempt status in the United States. For additional information about The Conference Board and how it can meet your needs, visit our website at www.conference-board.org.
Source: Salary Increase Budgets Holding Steady for 2009
Executive Action No. 282, The Conference Board
SOURCE The Conference Board
