New York (11/14/13) — A new article by Sibson Consulting’s Jason Adwin, “Compensation Planning for 2014: Salary-Increase Budgets Remain Stable,” indicates that salary-increase budgets for 2014 will rise only slightly from the previous year, continuing a trend that is now three years old. With inflation and the economy showing slow growth, it appears merit budgets have settled into a “comfort zone” of approximately 3 percent.
According to Adwin, “As long as organizations maintain confidence in their financial forecasts and there is general stability in the global economy, this trend is likely to continue. Salary-increase expenditures could quickly be derailed, however, by volatility generated by hot-button issues. These include lingering concerns over the economy, government-influenced instability (e.g., future government shutdowns) uncertainty regarding U.S. tax policy, and the impact of continued high unemployment.”
Sibson’s Annual Compensation Planning Analysis of projected and actual salary-increase budgets and structure salary-range adjustments provides data for three broad job classifications — executive, exempt and non-exempt, in 11 distinct industry groups — banking and finance, education, health services, information services/telecommunications, insurance, manufacturing, nonprofit, retail, services, transportation and utilities.
The full article is available here.
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Sibson Consulting (www.sibson.com), a member of The Segal Group, provides strategic human resources solutions to corporate and non-profit employers and professional service firms. Sibson's services include benefits, compensation, talent and performance management, communications, sales force effectiveness and change management. In 2014, The Segal Group is celebrating the 75th anniversary of its founding by Martin E. Segal.