Half of Employees not Expecting a Pay Raise

Nearly half (48%) of employees report they do not expect a pay raise in the next 12 months, which is the highest level seen in six quarters. Slightly more than one-third (36%) of employees expect a pay raise in the next year, down four points since the second quarter 2010 (40%) and relatively flat from the first quarter (35%). One-sixth of employees (16%) are unsure, down four points from the first quarter (20%).  

Men continue to be more optimistic regarding pay raises: 40% expect an increase in the coming year as compared to 32% of women.  

At the same time, according to a press release, nearly one-third (30%) of employees report they are more satisfied in their jobs today than one year ago compared to 26% in the second quarter of 2010, although one in four (25%) say their satisfaction is “worse.”   

The press release said the higher rate of job satisfaction may be tied to fewer employer-initiated cutbacks in recent quarters. In the second quarter, 41% of employees reported their company made changes to compensation, bonus, health care benefits and other perks, down from 54% in the second quarter of 2009.