Kansas City, Kan.— Although the economy is still struggling to make significant strides towards recovery, small improvements are starting to become more evident. The 2011 Compensation Data Utilities survey results found pay increase budgets fell to 2.7 percent, a slight decline from 2.8 percent reported in 2010. This decrease, however, is less than the drops seen in 2009 and 2010, in which pay increase budgets fell around half of a percent each year. Pay increase budgets are projected to hold steady in 2012 at 2.7 percent.
“There appears to be a level of cautious optimism within the industry in regard to the economy,” said Amy Kaminski, director of marketing for Compdata Surveys, the nation’s leading pay and benefits survey data provider. “Employers are taking a conservative approach, and we expect only a gradual increase over the next few years.”
Companies use pay increase budgets to make a number of different increases to their employees’ salaries. More than 60 percent of utilities organizations are allocating a portion of their budget to offer merit increases, while 21.5 percent are using them for promotional increases. Nearly 20 percent are using pay increase budgets to make cost of living increases and market adjustments.
The rate at which these increases are used varies by industry. Merit increases, for example, are being offered by telephone companies at a rate of 75 percent, while 65.8 percent of electric power generation, transmission, and distribution companies are using them. Merit increases are being offered at natural gas transmission and distribution organizations at a rate of 61.5 percent. The average merit increase budget reported in 2011 was 2.6 percent, with utility employers projecting a slight increase to 2.7 percent in 2012.
About the Survey
Compensation Data 2011 Utilities surveyed nearly 100 industry-specific job titles and 350 benchmark titles ranging from entry-level to top executives. Data was collected from nearly 130 utility employers reporting on 1,475 locations across the country. The results provide a comprehensive summary of pay data, benefit information and pay practices with an effective date of February 1, 2011.
Compdata Surveys is the nation’s leading compensation and benefits survey data provider. Thousands of U.S. organizations provide data each year ensuring the reliability of our results. Compdata Surveys has been providing comprehensive data at affordable prices to organizations from coast to coast since 1988. For further information about their compensation and benefit surveys, contact Michelle Willis at (800) 300-9570.
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