Although the economy is still struggling to make significant strides towards recovery, small improvements are becoming more evident. The 2011 Compensation Data Banking & Finance survey results found pay increase budgets remained steady at 2.6 percent. From 2008 to 2010, pay increase budgets fell more than one percent, going from 3.7 percent in 2008 to 2.6 percent in 2010. Pay increase budgets are expected to increase slightly 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. Nearly 86 percent of banking and finance organizations are allocating a portion of their budget to make merit increases. More than 49 percent offer promotional increases, while 26.9 percent make market adjustments. Only 6.1 percent of survey respondents utilize their pay increase budget for cost of living adjustments.
The rate at which these increases are used varies by industry. For example, merit increases are offered at all consumer finance and mortgage companies surveyed, while 85 percent of commercial banks use them. Credit unions offered merit increases at a rate of 84.8 percent. The average merit increase budget reported in 2011 was 2.6 percent, with banking and finance employers projecting a slight increase to 2.8 percent in 2012.
About the Survey
Compensation Data 2011 Banking & Finance surveyed more than 100 industry-specific job titles and 350 benchmark titles ranging from entry-level to top executives. Data was collected from more than 200 banking and finance employers reporting on nearly 7,300 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 the compensation and benefits surveys, contact Michelle Willis at (800) 300-9570.