As reported by Kimberly Weisul in BNET, salaries are on the increase, back up to the levels before the great recession, according to a WorldatWork study.
There are some reasons for reserved optimism. (Weisul bills herself as an optimist. And it’s tough to be a small business writer and an optimist at the same time these days. . .) Here are some key points on the 2011 salaries and raises:
• Salary budgets increased by 2.8% this year. They’re projected to rise by 2.9% in 2012.
• Most employees are getting raises. In 2011, 88% of employees got a raise to their base pay. Compare that with 80% in 2009.
• We’re moving past salary freezes with just 3% of employers say they’re planning across-the-board salary freezes this year, compared to 43% in 2009.
All of that is good news, at least within the context of the sluggish economy. So, just how much more are high performers getting? The “highest performers” have received a 4% raise in 2011. The “middle performers” got 2.7%, and the “low performers” got 0.7%. (I’m not clear on whether these raises have all taken effect or if some are projected throughout the rest of the year.)
There it is. A picture of what’s going on in companies around the country, based on the survey of WorldatWork members who work in HR and compensation departments, primarily for large companies in the U.S.
While 4% isn’t exactly a windfall, you have more to do with getting as much of that salary budget than you may think. If you’re a high performer, stay tuned soon for more on how.
In case you’re wondering how this data is compatible with that from the latest U.S. unemployment report, read the bnet article.