Expect a Pay Raise Next Year?
New York — Sept. 10
As the global economy continues to waver, U.S. employers are projecting moderate pay raises for employees next year as part of an ongoing effort to closely manage costs.
Moreover, similar to last year, U.S. employers do not expect to fully fund their annual bonuses for workers this year, according to new survey data from global professional services firm Towers Watson.
A survey of 857 U.S. companies conducted by Towers Watson Data Services found that companies are planning pay increases that will average 2.9 percent in 2013 for their salaried non-management employees.
This represents a moderate increase from the average 2.8 percent raise salaried non-management employees are receiving this year and 2.7 percent they received in 2011. Similar raises for 2013 are planned for executives and non-exempt employees.
According to the survey, exempt workers who receive the highest performance ratings will be in store for an average salary increase of 4.7 percent this year, roughly 50 percent more than workers with average ratings will receive (3.2 percent). Workers with below-average performance ratings will receive average merit increases of 1.3 percent.
A separate survey of 278 U.S. companies conducted by Towers Watson found that companies’ average projected bonus funding for current-year performance is 93 percent of target, marking the second consecutive year that companies are unable to fully fund their annual bonuses for workers. U.S. companies funded annual bonuses in 2011 at 95 percent of target.
Source: Towers Watson