Study Finds 97% of Employers Polled Plan to Increase Salaries in 2012
Posted on July 24th, 2011
A recent study has found that despite operating in an economy that is still fighting to recover, most U.S. companies are willing to pay higher wages in 2012. According to the Mercer study released on Wednesday, 97 percent of the 1200 employers polled are certain they will increase salaries, especially for their most talented employees, allowing them to earn and save more money.
Employers Plan Average 3 Percent Wage Increase
The U.S. employers polled in the study have almost unanimously agreed that it’s time to up the compensation for their workers.
During the recession, high unemployment and very minimal growth made it difficult for employers to stay afloat without laying off many of its workers. At the time, raising wages was nearly impossible. But after increases over the past couple of years, more companies are feeling confident that they can reward more employees.
The study reveals companies plan an average increase in base pay of 3 percent in 2012. This is slightly up from 2.9 percent in 2011 and 2.7 percent in 2010.
Biggest Pay Increases Reserved for Top-Performing Workers
Half of the companies polled said their pay hikes will be reserved for their top-performing employees in an effort to retain their best talent.
The survey said that top-performing employees currently make up about 8 percent of the workforce. For these employees, companies will issue an average salary increase of 4.8 percent in 2012.
Average workers can expect to see increases as well. According to the study, companies will issue them average salary increase of 3.1 percent. However, the weakest performers will be lucky to see any additional money at all with an average pay increase of just 0.3 percent.
The average 3 percent increase across the board is expected to equal an average of $41 more per biweekly paycheck after taxes for a full-time worker whose median annual income is $50,500.
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Tags: 2012, Salaries 2012
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