Survey: Pay Raises Projected to Plateau

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<p><strong>Scottsdale, Ariz. &mdash; July 19 </strong><br />Tighten your belts &mdash; employee pay raises will experience little change, if any, in 2008, according to the 34th-annual WorldatWork Salary Budget Survey (SBS). </p><p>The average salary budget increase for 2007 is 3.9 percent, an increase of 0.1 percent from last year, according to the survey. </p><p>Base pay increases can come from merit increases, cost of living increases and general increases (promotional increases are excluded). </p><p>Salary budgets &mdash; the total amount of money allocated by an organization for all employee salaries &mdash; do not include other employment hard costs such as medical/dental insurance, payroll taxes, 401(k) match, etc.<br /><br />After seeing salary budget increases sink to historic lows in 2003 and 2004 and climb slowly from 2005 through 2007, this year&rsquo;s installment indicates salary budgets might start to plateau. </p><p>Participating organizations in the annual WorldatWork Salary Budget Survey are reporting an actual average total salary budget increase of 3.9 percent overall across all employee categories, regions and industries for 2007. </p><p>WorldatWork&rsquo;s annual Salary Budget Survey is the world&rsquo;s largest and most comprehensive, with more than 2,400 respondents.<br /><br />&ldquo;With merit increases remaining under 4 percent, managers will have to think more holistically in order to produce meaningful rewards,&rdquo; said Anne Ruddy, WorldatWork president. &ldquo;HR practitioners need to learn the art and science of &lsquo;total rewards&rsquo; to leverage multiple factors to attract, motivate and retain talent. Compensation is one of the elements, but so are benefits, work-life, recognition and career development.&rdquo;<br /><br />WorldatWork Salary Budget Survey data will be released early next month and will include results for North American regions, major metropolitan areas and major industries, as well as data by organization size.<br /><br /><strong>Major metropolitan areas:</strong></p><ul><li>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Atlanta</li><li>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Baltimore</li><li>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Boston</li><li>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Chicago</li><li>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cincinnati</li><li>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cleveland</li><li>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Dallas</li><li>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Denver</li><li>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Detroit</li><li>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Houston</li><li>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Los Angeles</li><li>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Miami</li><li>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Minneapolis</li><li>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; New York</li><li>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Philadelphia</li><li>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Phoenix</li><li>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Pittsburgh</li><li>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Portland</li><li>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; San Diego</li><li>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; San Francisco</li><li>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; San Jose</li><li>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Seattle</li><li>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; St. Louis</li><li>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Tampa</li><li>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Washington, D.C. </li></ul><p><br />Of the 25 major metropolitan areas covered in the survey, 10 expect salary budgets to stay the same or decline in 2008. The other 15 expect very minimal increases.<br /><br /><strong>Major industry groupings:</strong></p><ul><li>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Finance</li><li>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Manufacturing</li><li>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Public Administration</li><li>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Retail</li><li>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Service</li><li>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Transportation/Utility</li><li>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Wholesale</li></ul><p><strong>Organization size:<br /></strong></p><ul><li>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1-499</li><li>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 500-2,499</li><li>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2,500-9,999</li><li>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 10,000-19,999</li><li>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 20,000-plus </li></ul>

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