Slight Increase In Salary Budgets Projected For 2016
Similar to their 2015 results, WorldatWork is again projecting a 3.1 percent average increase (median 3.0 percent) in salary budgets for 2016. The 2015 projections were exactly the same; however, the official numbers fell short of the 3.1 percent initial prediction.
The Society for Human Resource Management (SHRM) recently reported that Hay Group, along with additional researchers, have also predicted the â€œmoderateâ€ 3.0 percent median increase for 2016, which mirrors the salary increases for the last five years. However, according to the same report, the percentages may be slightly higher depending on industry and location.
In addition, WorldatWork reported that there still appears to be a sense of fiscal cautiousness in United States businesses, which points to the stagnant salary increases since 2011. However, their analysis added that companiesâ€™ conservative approaches to salary increases have not taken away their desire to recognize and reward higher-performing employees with pay raises. Organizations are simply being careful with their budgets while, at the same time, reinforcing successful behaviors.
Major industry grouping reports indicate that Accommodation and Food Services can expect a projected average salary increase of 3.4 percent as compared to the 3.1 percent national average. On the lower end of the spectrum, Educational Services is only expected to have a projected 2.5 percent (average and median) salary increase in 2016. Non-profit organizations (categorized as â€œOther Servicesâ€) are likely to see a 3.2 percent average (3.0 percent median) increase, identical to 2015 actual figures. The majority of the other reported industries, like manufacturing, management, real estate and utilities, will hover in the projected 3.0 percent to 3.1 percent range. (WorldatWork).
Regarding regional salary increase reporting, the central, eastern, southern and western United States are projected to stay between 3.0 percent and 3.1 percent in both exempt and non-exempt categories. (WorldatWork)
In conclusion, all major researchers seem to concur that overall salary increases for 2016 will continue to remain between 3.0 percent and 3.1 percent and between 2.5 percent and 3.4 percent regionally and across all major industries. WorldatWork reiterated, â€œUntil the demand for qualified labor meets the supply of qualified job seekers, upward pressure on wages will continue to be relatively low.â€