Pay Increase Budgets for Not-For-Profit on Target in 2011

August 31, 2011    

Although the economy is still struggling to make significant strides towards recovery, small improvements are becoming more evident. The 2011 Compensation Data Not-For-Profit survey results found pay increase budgets remained on target at 1.8 percent, exactly what was projected for 2011 by not-for-profit organizations. This is just a slight increase from 2010 pay increase budgets, which organizations reported at 1.7 percent. Pay increase budgets are expected to stay fixed at 1.8 percent in 2012.

“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.”

Organizations use pay increase budgets to make a number of different increases to their employees’ salaries. More than 60 percent of not-for-profit organizations are allocating a portion of their budget to make merit increases. More than 28 percent offer promotional increases, while 22.1 percent make market adjustments. More than 14 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, nearly 79 percent of associations surveyed offer merit increases, while 41.8 percent of government entities use them. Colleges and universities offered merit increases at a rate of 55.7 percent. The average merit increase budget reported in 2011 was 2.6 percent, with not-for-profit employers projecting a slight decrease to 2.2 percent in 2012.

About the Survey
Compensation Data 2011 Not-For-Profit contains data on more than 100 industry-specific job titles and more than 300 benchmark titles ranging from entry-level to top executives. Data is collected annually from not-for-profit 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, 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 more information about compensation and benefits surveys, contact Michelle Willis at (800) 300-9570.

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