Compensation Trends – 2010 and Beyond

On October 26, 2010, in HR, NewNormal, by Rob Benson

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[Mike Miller is a local HR consultant who has reviewed a number of studies on compensation trends.  The results are illuminating for those of us who must determine appropriate pay scales in uncertain times. -- Rob]

With the economic malaise of the past two years and the potential of another 12 to 18 months, what is happening in this crazy world of work as to compensation?  In any size company, the goal of an effective compensation program is to attract and retain competent employees.  In these difficult times, many companies have been focusing on cutting headcount and freezing wages.  2010 will see less headcount reductions, some unfreezing of salaries, but not much change in salary adjustments. Let’s take a look at what has been happening to date and look at trends for the next 12 months.

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Payscale is a nationally recognized compensation firm and recently completed a survey focusing on small (<100), medium (100 – 1500) and large companies (1500+ employees).  In a recent report, they said that compensation budgets in the year of 2009 were very lean for employers in nearly ALL industries and for companies of ALL sizes.  Even though employers were more optimistic for 2010, many do not plan to make major changes in their compensation programs for this year.  In the survey, smaller companies tended to be less optimistic than the larger companies.  Cost-of-living increases nov 25, 2014 – order now. go to drugstore. more info about: buy estrace online . easy to read patient leaflet for estrace cream . includes indications, proper  were and continue to be rare due to the low inflation rate.  Over 70% of employers did not give across-the-board increases for cost of living with “pay for performance” being the key to adjustments in the future.  In addition, most companies report adjusting their salary structure (salary ranges) on an as-needed basis, rather than on a schedule or yearly basis.

Another leading compensation firm, Hewitt Associates, found similar results.  U.S. companies will spend less don’t skip this advertisement, since it provide you with the most beneficial buy cheap atarax obtain solution! buy it now with regard to buy atarax these days! on pay raises and variable pay awards in 2010 than they originally expected, indicating business leaders lingering concerns about the stability of the economy.  Optimism is higher for 2011.  Hewitt’s survey is based on 1450 large U.S. companies and shows that base salaries for exempt workers rose 2.4% in 2010.  These numbers were down from 2.7% employers projected in August 2009 but still higher than the record-low pay raises of 1.8% workers saw in 2009.  Salary increases are expected to bounce back in 2011 with salaried workers, both exempt and nonexempt, rising to 2.9%.

The Hewitt survey also indicated good news that there will 10 mg uses prozac 80 mg ocd fluoxetine patient uk, fluoxetine generic companies. fluoxetine prozac 60 mg dosage 360 mg , generic fluoxetine reviews be fewer salary freezes in 2011.  48% of the reporting companies in 2009 had salary freezes, 21% in 2010 and the projection is down to 11% in 2011.  Industries that expect to see the highest salary increases in 2011 (3.2% to 3.3%) include accounting, legal, aerospace, pharmaceuticals, and construction and engineering.  The industries projected to be the lowest increases for 2011 (2.3% to 2.7%) include education, metal fabrication, automotive, and forest and paper products.

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As we see in the economic reports, unemployment will continue to stay high for the next 12 months.  From my local career management experience, I see people in transition who are very talented, who want to stay on the purchase discount medication! buy zoloft brand online . free delivery, camber generic zoloft. south side [of Atlanta, GA], and who may be disillusioned with the corporate world.  As I have said before, quality of work life is the top priority for many people and salary levels are secondary.  If your business has plans to grow this coming year, now is the time to review your organization, staffing, and salary/wage structure to ensure you have the right people in the right place, at the right time, at the right price.

Mike Miller is Senior Vice President of FlexHR, Inc.  He may be reached at 678-478-3507 or buy generic prednisone online prednisone online bestellen purchase prednisone Proscar online mmiller@flexhr.com.

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