The newly released 2010 Compensation Data Banking & Finance survey results show pay increase budgets have fallen to 2.6 percent, down from 2.9 percent in 2009.
Although many economists have predicted the U.S. may see a very modest economic improvement in 2010, pay increase budgets have continued to decline over the past year. The newly released 2010 Compensation Data Banking and Finance survey results show pay increase budgets have fallen to 2.6 percent, down from 2.9 percent in 2009. Little change is expected over the next year, as banking and finance organizations predict a slight uptick in 2011 to 2.9 percent.
“With a slow economic recovery expected, companies are continuing to make conservative compensation choices,” said Amy Kaminski, director of marketing for Compdata Surveys, the nation’s leading compensation and benefits survey data provider. “Although keeping current employees on staff is a top concern during the jobless recovery predicted by most economists, increasing pay will continue to be a difficult priority until an upswing in the economic climate becomes more visible.”
According to the survey, pay increase budgets vary within the industry as credit unions had the highest pay increase budget, 2.9 percent. Consumer finance and mortgage companies followed at 2.8 percent. Commercial bank respondents had the lowest pay increase budget, 2.3 percent. Credit unions are projecting the highest pay increase budget in 2011 at 3.2 percent, with commercial banks projecting the lowest, 2.6 percent.
The 2010 Compensation Data Banking and Finance survey results also show pay increase budgets are consistent across different regions of the country. Banking and finance companies in the Midwest reported the highest pay increase budget, 2.6 percent. This is closely followed by organizations in the East, South and West regions at 2.5 percent. Respondents in the South are projecting the highest pay increase budgets for 2011, 3.0 percent. Companies in the East, Midwest and West all follow at 2.8 percent.
About the Compensation Data Banking & Finance Survey
Compensation Data 2010 Banking and Finance contains data on over 100 industry-specific job titles and more than 250 benchmark titles ranging from entry-level to top executives. Data is collected annually from banking and finance employers across the country. The results provide a comprehensive summary of pay data, benefit information and pay practices with an effective date of February 1, 2010.