Salary Increases Climb Slowly
Pay increases for U.S. workers are slow to grow, but inching upward, according to a survey by an Illinois-based global risk management and human resources firm.
Aon Hewitt's survey of more than 1,300 U.S. companies showed that base-pay increases for salaried workers rose to 2.8 percent in 2012, up from 2.7 percent in 2011. Modest year-over-year increases have been steady since they sank to an all-time low of 1.8 percent in 2009, according to Aon Hewitt.
The survey said that despite slow upward progress, salary increases probably won't reach pre-recession levels of 4 percent or more in the near future, given more conservative attitudes about spending.
"Companies are more impacted by the global economy than ever before. As a result, organizations continue to be conservative with their spending, but we anticipate that attitude will remain even after the economy rights itself," said Ken Abosch, compensation marketing, strategy and development leader at Aon Hewitt.
Workers are finding other ways to grow their salaries, however. The survey found that companies are spending more on performance based awards as a way to drive performance while keeping fixed costs low. Ninety percent of companies surveyed offered at least one performance-based raise program in 2012.
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