Benefits December 20, 2006

Mercer: Modest Pay Raises Predicted for 2007

December 20, 2006 (PLANSPONSOR.com) - The top performing workers are expected to see the greatest boost in compensation next year while executives, management, professional and office employees will only see modest pay increases, according to a recent Mercer Human Resource Consulting survey.
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According to the Associated Press, the Mercer survey of 227 firms showed that the top 12.8% of workers are expected to see average pay increases of 5.4% and the next highest 26.1% will get average increases of 4.4%, leaving the bulk of workers (52.9%) with an average 3.3% hike next year. The lowest 2.9% of performers will get a slight 1.4% bump.

Executive, management, professional and office workers will get average raises of 3.7% and workers in trades, production and service can anticipate raises of 3.6%, the survey found.

Even if base salary increases aren’t substantial, about three-quarters of employers are planning to hand out bonuses next year, with those employers in information technology employers expected to be the most generous, according to the survey.

Sixty-nine percent of employers in information technology say they are offering signing bonuses next year; 85% say they offer milestone pay awards and 84% offer spot cash awards.

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