Employees in the US to see salary hike in 2010
With the economic recession expected to ease in the coming months, a survey shows that employees in the US are likely to see their salaries rise by as much as 3 per cent in 2010.
New York: With the economic recession
expected to ease in the coming months, a survey shows that
employees in the US are likely to see their salaries rise by
as much as 3 per cent in 2010.
The planned 3 per cent increase in pay would be across
executives, middle management, supervisory and clerical
positions, global consulting firm Hay Group said in a recent
Reflecting improved sentiments about the economy, the
likely salary hike of 3 per cent is higher than anticipated
earlier, it said.
"... it (pay rise) reflects an uptick relative to a Hay
Group survey in March 2009, when organisations indicated that
planned salary increases were a median of 2 per cent for all
employees and zero for executives," Hay Group said.
"This may indicate a positive opinion from organisations
regarding the relative health of the overall economy and their
organisations in 2010," it added.
Hay Group`s forecast results are based on the responses
from more than 400 organisations from March through June 2009.
The survey found that base salary increases are healthier
in select industry sectors, such as healthcare, energy and
"While these numbers are lower than what we have seen in
recent years, the primary concern for most employees right now
is job security," Hay Group US Rewards Practice Leader Tom
McMullen noted that relatively speaking, a smaller base
salary increase is not as much a concern for employees as is
"Managers are struggling with how to maintain a
motivating work environment in the midst of layoffs, base
salary freezes and lower bonuses.
"Recognising employees` contributions and ensuring
meaningful and impactful work opportunities in a healthy work
climate can go a long way in this economic environment,"