How Much Will The Average Raise Be This Year?
March 25, 2011 by Bob Hill
A new study reveals how much the average company will be offering in terms of pay hikes (and other incentives). The Towers Watson study, which included nearly 400 U.S. companies across a broad range of industries, found the average merit raise in 2011 will be approximately 3% (compared with 2.7% in 2010).
That represents the largest annual increase in merit raises since the financial crisis began back in 2008. Back in those days, companies averaged 3.5-4% merit raises a year, according to a recent CFOZone post.
What’s more: Companies are planning to hire, providing some much-needed relief to long-time employees, who’ve been forced to take on more responsibilities over the past few years.
Among the expected hiring trends:
- 42 percent of companies are planning to hire workers for positions that require critical skills
- 40 percent plan to add professional and technical workers, and
- 25 percent plan to hire sales professionals and hourly workers this year.
Despite all the optimistic forecasts, more than a third of companies claim they’re still having trouble when it comes to recruiting top performers, many of whom have been able to maintain their employment throughout the crisis.
Source: “Merit raises are coming back,” by Stephen Taub, CFOZone, 3/1/11.