Employers are expected to give an averaged 3% raise in base pay in the coming year, with top performers seeing as much as an 8% increase, thanks in part to a strengthening economy and growing job market.
According to Mercer, the average raise in base pay is expected to be 3% in 2015, up slightly from 2.9% in 2014, 2.8% in 2013 and 2.7% in 2012. In addition to the expected trend toward increased salaries, Mercer notes top-performing employees can expect to see as much as an 8% increase in base pay as companies continue to focus on retaining and engaging the best talent.
Employee engagement and retention continue to be a top priority for employers, said Mary Ann Sardone, partner in Mercers talent practice and regional leader of the firms rewards segment. As a result, employers recognize that they need to reward top-performing employees. And while pay is still most important, theyre continuing to provide rewards beyond compensation in the form of training and career development.
Mercers compensation trend survey includes responses from more than 1,500 mid- and large-sized employers across the U.S., capturing information for five employee categories: executive, management, professional (sales and nonsales), office/clerical/technician, and trades/production/service.
In addition to the differentiation seen across various employee segments, variations exist among industry sectors. Organizations in high-performing industries such as energy, for example, plan to grant higher raises than the average 3%. The energy industry projects an average pay increase of 3.5%. On the other hand, industries expecting to award less next year include consumer goods and services, at 2.8%.
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