"Real liberty is neither found in despotism or the extremes of democracy, but in moderate governments.
Alexander Hamilton

Sunday, August 16, 2015

Next Years Pay Raise

CNN Money  reported on a study by Towers Watson who surveyed more than 1,100 US companies. 
98% of those surveyed plan an average of a 3.0% salary increases for exempt and nonexempt eemployees. Executives and management employees will average about 3.1%. According to the Towers Watson study: "...exempt workers who received the highest performance ratings were granted an average salary increase of 4.6% this year, about 77% larger than the 2.6% increase given to workers receiving an average rating. Workers with below-average performance ratings received salary increases of less than 1%."
Also noted in the CNN  Money story was that 3% is well above the overall Consumer Price Index which is flat at 0.1%.   
But it is not all about the money: “It’s no longer all about base salary. While our research consistently shows the importance of pay when employees decide to stay or leave an organization, we also know their decisions are not just about the money. Opportunities for career development, learning development and challenging work are top drivers of retention. It’s the value of the total package — compensation, benefits and non monetary rewards — that makes the difference. As a result, companies are paying closer attention to understanding how employees value these elements,” 

3 comments:

Joseph Cormier said...

"It’s the value of the total package — compensation, benefits and non monetary rewards — that makes the difference. As a result, companies are paying closer attention to understanding how employees value these elements,” "

What is surprising, is that is presented as news! Or, is today's culture, really ... as Trump would put it ... that stupid!

May it's generational. We geezers, can remember companies recruiting/enticing employees from other companies, to join their company; not because of some altruistic hormone ... it was competition for help to run a business. It was raiding other companies talent to move forward, with a willing work force. Everyone understood the "game"; shortage of qualified talent.

Benefits came about as an enticement, not an entitlement. Yes folks ... market driven, not a gov't handout. The change in markets may require gov't intervention, judging by some of today's socialistic tendencies.

Why have companies, for all practical purpose, gotten rid of pensions. Have you compared medical benefit plans today, versus back in the 70,s and through the next few decades. Raises ... how about just getting relevant jobs, today. You might start hearing about company stock options, again, as they were, once, instead of pensions; not just for the top 1% percenters.

Unions are the exception, but are a dying breed. Some of us are old enough, and fortunate enough, to have experienced exempt/non-exempt, union/non-union employment.

"Enlightened" companies know/have known about benefits all along. Look to the Googles, Facebook cultures, and even the CruComs, and peek at how they treat employees. Happy campers are they ... company protecting the investment in people ... that they need for that function ... that they can perform!

Colas are not the same as an "expected raises". How about valid "performance appraisals". "Exit interviews" should also be part of valid performance appraisals. They are in the commercial sector!



Anonymous said...

Joe, Well said!

Fasten your seatbelt its going to be a bumpy ride said...

And if they think their study is complete wait until the "Employer Mandate" of the ACA (Obama Care) kicks in just AFTER the elections. The start date for this mandate was postponed to after the elections for good reason and will hit the economy and the worker in the ass.