In a press release, Buck said the target increase for the current fiscal year is between 3.7% and 3.8%. However, target median increases for CEOs are 4% for the current and next fiscal years.
Ninety-two percent of the 370 organizations surveyed have a salary increase budget, and 22% said they have a separate promotion budget ranging from 6% of base pay for non-exempt employees to 7.8% for directors, according to the release.
According to Buck, 69% of organizations report having a formal salary range structure, and a large majority make salary range adjustments on a 12-month cycle. The median target adjustment to salary ranges for the next fiscal year is 3%.
The survey found that 80% of organizations offer short-term incentive plans. Targeted spending on short-term incentive plans range from a median of 5% of base pay for non-exempt employees to 15% for managers and 40% for executives – unchanged from prior years. Targeted spending on CEO short-term incentive plans also remain the same at 80% of base pay.
Other key survey findings include:
- 41% of organizations provide geographic pay differentials – most determined by geographical differential surveys, general market data and area-specific market surveys.
- 56% of survey respondents offer hiring and/or retention bonuses – Information technology is the corporate function most likely to trigger such a bonus. Hiring bonuses range from a median of 5% of base pay for non-exempt and professional employees to 20% for the CEO, while retention bonuses range from 5.5% of pay for non-exempt employees to 18% for executives.
The survey report is available for $200 by writing to Buck’s Global Survey Resources, 500 Plaza Drive, Secaucus, NJ, 07096-1533, calling 800-887-0509, or visiting www.bucksurveys.com .