As organizations balance the effects of the recession, banking and finance companies see slightly higher pay range adjustments than last year while the time between adjustments grows longer, according to the 2011 Compensation Data Banking & Finance results.
The actual pay range adjustment of 1.8 percent in 2011 increased slightly from the 1.7 percent adjustment in 2010, and came in just above the projected 1.7 percent for this year. This upward trend is a slow recovery after a significant drop from the 2009 adjustment of 2.3 percent.
Pay range adjustments are beginning to occur less often, with an average of 15.4 months since the last adjustment reported this year. In 2010, participating organizations indicated waiting 13.8 months between adjustments. However, timing varies among industry categories. Commercial banks reported 16.5 months since the last adjustment, but credit unions waited 13.7 months to adjust pay ranges.
“In light of the volatile economy, many employers are continuing to stay cautious,” 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, banking and finance organizations vary in how they treat employees going over the range maximum. According to the results, more than 77 percent of banking and finance organizations reported withholding increases. However, nearly 88 percent of participating credit unions reported withholding increases while 69.6 percent of commercial banks did so this year. The results also indicated 61.7 percent of banking and finance companies offered lump sum increases in 2011.
About the Survey
Compensation Data 2011 Banking & Finance surveyed more than 140 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 7,275 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 more information about our compensation and benefit surveys, contact Michelle Willis at (800) 300-9570.