Not-For-Profit Pay Increase Budgets See Small Increases

September 20, 2012    

As the economy struggles to regain its footing, pay increase budgets increased slightly for not-for-profit organizations this year. The 2012 Compensation Data Not-For-Profit survey results reported pay increase budgets at 2.6 percent, reflecting an increase from 1.8 percent reported in 2011 and 1.7 percent reported in 2010. Pay increase budgets are projected to remain stable at 2.6 percent in 2013.

“For the past few years, pay increase budgets for many industries have stagnated or experienced only lukewarm increases,” said Amy Kaminski, director of marketing for Compdata Surveys. “This will likely continue to be the trend until employers begin to feel economically comfortable.”

Pay increase budgets vary by industry as associations report the highest 2012 budget at 2.7 percent. Government entities reflect pay increase budgets of 2.5 percent, compared to churches and religious organizations at 2.3 percent. Colleges and universities report the lowest 2012 pay increase budgets, 2.2 percent. According to the results, pay increase budgets vary by state as well. Across the country, pay increase budgets range from 2.2 percent to 3.2 percent.

Pay increase budgets are used to make many different types of adjustments to employees’ salaries. More than 68 percent of nonprofits report using pay increase budgets for merit increases, while more than 30 percent used them for market adjustments. Pay increase budgets are used by 20.4 percent of non-profit employers for promotional increases. Only 14.9 percent of organizations utilize pay increase budgets to implement cost of living adjustments.

About the Survey
Compensation Data 2012 Not-For-Profit provides a comprehensive summary of pay data, benefits information and pay practices with an effective date of March 1, 2012. More than 100 industry-specific job titles and 400 benchmark titles were surveyed, ranging from entry-level to top executives, with data collected from more than 3,100 not-for-profit organizations across the country.

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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