Expect small increases in pay budgets for manufacturers

July 27, 2012    

Original Article: Manufacturing Weekly

By Charlie Walker

Pay increase budgets for the manufacturing industry: Half full or half empty?

Some people would be satisfied to learn they should expect their company’s pay increase budget to grow by 2.8% for 2012, a small tick above 2011′s 2.7%.

Others might see it as an ongoing, disappointing sign of the times.

Still, small growth is better than no growth when you’re talking about your employees’ paychecks.

The recently released 2012 Compensation Data Manufacturing & Distribution survey, put together by Compdata Surveys, also projects a slight increase to 2.9% for 2013.

Pay increase budgets vary slightly from industry to industry:

  • machinery manufacturing and electric and electronic manufacturers are budgeting 3%
  • chemical and pharmaceutical manufacturers and transportation equipment makers are planning for 2.9%
  • paper and printing manufacturers report a 2.4% boost

Industry analysts were realistic about the data, saying this will likely continue to be a trend until manufacturers feel the economy has grown stronger.

Pay increase budgets are the pots of money that manufacturing managers estimate they’ll have available to make adjustments to employees’ salaries.

The breakdown on how this money is distributed:

  • 76% of manufacturing and distribution businesses use it for merit increases
  • close to 30% tap into it for promotional increases
  • 25.6% use the funds to make market adjustments in salaries, and
  • 12.4% of employers use it for cost-of-living increases.

Original Article: Manufacturing Weekly

 

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