Pay Increase Budgets for Hospitality Jump in 2011

September 6, 2011    

Although the economy is still struggling to make significant strides towards recovery, small improvements are becoming more evident. The 2011 Compensation Data Hospitality survey results found pay increase budgets jumped to 2.4 percent this year from 1.9 percent in 2010. Pay increase budgets are expected to increase slightly in 2012 to 2.6 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. Eighty-two percent of hospitality organizations are allocating a portion of their budget to make merit increases. More than 32 percent offer promotional increases, while 21.6 percent make market adjustments. Only 9 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 resorts surveyed, while just 69.2 percent of hotels use them. Restaurants offered merit increases at a rate of 78.8 percent. The average merit increase budget reported in 2011 was 2.5 percent, with hospitality employers projecting a minimal increase to 2.6 percent in 2012.

About the Survey
Compensation Data 2011 Hospitality contains data on more than 100 industry-specific job titles and 350 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, 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.

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