Preliminary reports from the WorldatWork 2014-2015 Salary Budget Survey (www.worldatwork.org) published in July of 2014, indicates that employees may expect a median base salary increase of approximately three percent in 2015. According to WorldatWork, this is still below pre-recession levels and there is little fluctuation between different industries to include chemical, consumer products, financial services, health insurance, industrial goods and utilities. The oil and gas industry has a projected median base salary increase of four percent and hospital employees may be able to expect an increase of two percent in 2015. Also, not-for-profit organizations may provide somewhat less than the median base salary increase projected for 2015. While there are minimal differences between industries, there are also minimal differences between job levels. Nonexempt level employees base salary means are projected to be near three percent and exempt level employees and officers and executives near 3.1 percent overall.
It was also reported that employers will increasingly look to tie reward programs to performance management processes. Meaning, organizations are willing to pay for performance, but only if they achieve their performance goals. Employers will also look to increase their future emphasis on improving their variable pay programs, e.g. commissions, bonuses and incentives and improving their key nonfinancial reward programs.
Salary range adjustment percentages continue to lag behind average base pay increases for 2015. The 2015 projected median percentages are reported to be between 2.0 and 2.4 percent depending upon job level with the higher percentages being reported in the director and executive level jobs and the lower percentages in the hourly or nonexempt level jobs.
For additional information on base salary and/or salary range adjustments for 2015, please contact us at www.newfocushr.com.
Written by: Kristen Deutsch, M.B.A., CCP