According to a WorldatWork press release, salary increase budgets reached historic lows in 2003 and remained constant in 2004. In the 2005 survey companies project an increase of 3.8% in 2006.
In addition, companies reported that 92% of workers will get a base pay increase in 2005, up from 87% in 2004. The survey reports on general increases, merit increases, and cost of living increases, and excludes promotional increases.
The survey also showed 76% of companies are offering formal variable pay programs this year, a 1% decrease from last year, according to the release.
The annual survey was from 2.483 participants from America’s largest corporations representing 13.9 million employees.
WorldatWork is a professional association for compensation, benefits, and total rewards information. Its Web site is www.worldatwork.com .