Consumer Comeback Blog

Employers Expected to Increase Pay Raises in 2012

As companies across the country face financial uncertainty, many employees count themselves lucky just to have a job, much less a expect a raise. But a recent Empsight International survey of 270 multi-national companies could give a glimmer of hope to workers resigned to earning the same salary for the foreseeable future.

The survey forecasts salary merit increases to be at 3% for 2013, which is a 1.3% above the 1.7% inflation index through June.The average salary merit increase in 2012 was 2.70% with a Median value of 3.0%. Of the companies surveyed, 9.2% reported trying to make up for remedial salary increases in 2012.

It’s a delicate balance between employees who would prefer to find a higher-paying job, but fear the job market, and employers, who understand that offering competitive compensation and rewarding good work with raises is the best way to retain and recruit quality employees.

“Large companies have moved away from salary freezes over the past two years and now have significant concerns in relation to employee retention, pay competitiveness and skill shortages,” Vincent McHugh, managing director of Empsight, and survey author, said in a press release.

The survey forecasts salary merit increases to be at 3% for 2013, which is a 1.3% above the 1.7% inflation index through June.The average salary merit increase in 2012 was 2.70% with a Median value of 3.0%. Of the companies surveyed, 9.2% reported trying to make up for remedial salary increases in 2012.

So, who can expect to receive the best raises, and who gets the bare minimum? The Oil/Gas/Service industry segment had the highest average salary merit increase for 2012 at 3.30%, while the Telecom/Cable/Satellite only gave 2.41%.

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