2008 Wage Hikes Expected To Remain Flat

December 6, 2007 (PLANSPONSOR.COM) - The average projected merit/salary increase for 2008 is 4.1%, which, according to a new study, was the average merit/salary hike for all employees this year.

A news release from the Upper Saddle River, New Jersey-based Compensation Resources said its latest study found that, generally, private companies reported higher percentages of actual 2007 and budgeted 2008 merit hikes compared with public or nonprofit organizations.


The study found that target awards for short-term incentive plans are much higher in public and private companies than in nonprofits. Overall, in terms of the compensation package mix, base salary makes up the largest percentage of the mix, followed by annual bonus/incentives and the long-term incentives. Stock appreciation rights continue to be the least commonly used type of long-term incentive plan.


According to the announcement, the survey found that the raises for executives were 4.7% this year and are projected at 4.5% for 2008, while 2007 hikes for non-exempt salaried workers were 3.9% and are projected at 4.2% next year.


Data were compiled from survey questions that were developed by CRI and distributed to companies in 12 industrial classifications, in addition to not-for-profit organizations. The survey sampled year-end compensation data from a variety of organizations collected in November 2007.


For more information, contact Andrew Sellers at 877-934-0505 x115 or go here .