As organizations balance the effects of the recession, pay range adjustments see little change overall while the time between increases grows, according to the 2011 Compensation Data Services results. The actual pay range adjustment of 1.6 percent in 2011 varied little from the 1.4 percent adjustment in 2010, but fell short of the projected 1.7 percent adjustment for this year.
Pay range adjustments are beginning to occur less often, with an average of 16.2 months since the last adjustment. In 2010, organizations reported a 15-month gap, a significant increase from 12.5 months in 2009.
“In light of the recent setback for the economy, employers may become even more cautious in the coming years,” said Amy Kaminski, director of marketing for Compdata Surveys, the nation’s leading pay and benefits survey data provider. “A conservative approach may soon become the norm instead of the exception for many organizations.”
Overall, services organizations vary in how they treat employees going over the range maximum. According to the results, 76.2 percent of participating law firms reported withholding increases while just 16.7 percent of engineering firms did so this year. More than 52 percent of all reporting services organizations reported withholding increases. Lump sum increases were reported by nearly 58 percent of reporting services organizations in 2011. However, the results indicate only 28 percent of retail businesses granted lump sum increases this year compared to more than 65 percent of real estate and construction organizations.
About the Survey
Compensation Data 2011 Services surveyed more than 75 industry-specific job titles and 350 benchmark titles ranging from entry-level to top executives. Data was collected from more than 400 services employers reporting on more than 2,800 locations across the country. The results provide a comprehensive summary of pay data, benefit information and pay practices with an effective date of January 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 our compensation and benefit surveys, contact Michelle Willis at (800) 300-9570.