Although the economy is still struggling to make significant strides toward recovery, small improvements are starting to become more evident. The 2011 Compensation Data Manufacturing & Distribution survey results found pay increase budgets rose to 2.7 percent, up from 2.2 percent in 2010. Pay increase budgets are projected to increase further in 2012 to 2.8 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 benefit 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 70 percent of manufacturers and distributors are allocating a portion of their budget to make merit increases. Just over 30 percent are offering promotional increases, while 21.6 percent are making market adjustments. Only 11.9 percent of survey respondents are utilizing their pay increase budget for cost of living adjustments.
The rate at which these increases are used varies by industry. Merit increases, for example, are being offered by distribution and warehouse companies at a rate of 85.1 percent, while 80.8 percent of chemical and pharmaceutical manufacturers are using them. Sixty-three percent of paper and printing manufacturers are offering merit increases. The average merit increase budget reported in 2011 was 2.7 percent, with manufacturing and distribution companies projecting the same in 2012.
About the Survey
Compensation Data 2011 Manufacturing & Distribution surveyed more than 100 industry-specific job titles and 350 benchmark titles ranging from entry-level to top executives. Data was collected from nearly 1,100 manufacturing and distribution employers reporting on more than 9,500 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.