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PPC News Alert
2017 Salary Increase Projections
A recent study completed by WorldatWork (WatW) is forecasting a median merit budget of 3.0% for 2017 with an average merit budget of 3.1% for all jobs across all industries. Actual 2016 increases reported by WatW are projected to be 3.0% which is slightly higher than the 2.7% forecasted by ERI (Economic Research Institute). Other related information:
- Salary budgets will be influenced by an organization’s financial health as well as its business segment/industry.
- Organizations are continuing to use variable pay as a method to reward employee performance.
- Some functions/fields and/or geographic locations may see higher than average increases depending on competitive pressures.
A recent study conducted by CareerBuilder/Emsi has shown that there are a number of fields where demand is exceeding supply. Fields with the greatest gaps between open positions and academic preparation reported in the study include Information Sciences, Nursing/ Healthcare and Pharmaceutical Sciences among others. The result is that “with so many job vacancies open, employees — particularly millennials — are not hesitating to switch jobs.” The study also reports that top candidates will not be on the market for a long period time; the time to hire will be shortened.
In other pay related news, Starbucks reports that it is raising wages by at least 5% for all employees and managers in company run stores; the amount of the increase is dependent on geographic location and market factors. JP Morgan Chase has announced it will increase minimum pay to a range of $12 to $16.50 an hour, also depending on market and location factors. Last month, Macy’s Inc. tentatively agreed to a deal with some of its workers after an employee union negotiated higher wages and more affordable health care.
If you have any questions about merit budgets or concerns related to your organization’s market competitiveness, contact Linda Ulrich at 413-262-6739.
This publication is for information only and does not constitute legal advice; consult with legal, tax, and other advisors before applying this information within your organization. If you do not wish to receive the PPC Newsletter, please reply to this email with “unsubscribe” in the subject line.