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 Hospitality survey results show pay increase budgets have fallen to 1.9 percent, down from 2.2 percent in 2009. Budgets are expected to begin rising again next year, as hospitality organizations predict an uptick in 2011 to 2.6 percent.
“With a slow economic recovery expected, organizations 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 casinos had the highest pay increase budget, 2.4 percent. Hotels and resorts followed at 1.6 percent. Restaurants reported the lowest pay increase budget, 1.4 percent. Hotels and restaurants are projecting the highest pay increase budget in 2011 at 2.8 percent, with casinos and resorts following at 2.5 percent.
The survey results also show pay increase budgets vary across different regions of the country. Hospitality organizations in the South and West reported the highest pay increase budgets, 2.1 percent. This is followed by organizations in the Midwest at 1.7 percent. Respondents in the West are projecting the highest pay increase budget for 2011, 2.7 percent. Companies in the South and East follow at 2.6 percent and 2.5 percent, respectively.
About the Survey
Compensation Data 2010 Hospitality 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 hospitality employers across the country. The results provide a comprehensive summary of pay data, benefit information and pay practices with an effective date of March 1, 2010.