Top 5 Compensation Trends
Top 5 Compensation Trends

Top 5 Compensation Trends

Experts are expecting compensation trends to stay relatively stable through 2013. Most jobs will continue to see modest increases in pay, while in-demand jobs can expect to see higher raises, especially technical positions.

Here’s an overview of the top five trends to be watching in 2013:

1. Fewer pay freezes
Surveys show that fewer employers are freezing pay this year compared to previous years, a trend that will likely continue as the economy improves. One study of Ohio organizations found that 91% of employers were planning to provide pay increases in 2013, up from just 55% in 2009.

2. Pay increases expected to stay around 3%
Salary projections predict pay increases will be 2.9-3.0 for 2013, compared to 2.7-2.8% over the last few years. These projections are lower for non-profits (2.5) and behavioral health care organizations (2.3).

3. Increased use of benchmarking for compensation decisions
Employers are using benchmarking data to make compensation decisions, relying on local, national and international surveys. Research finds that employers are more likely to guide the compensation discussion with benchmarking and reports than with analytical techniques like predictive modeling and simulations.

4. Merit-based pay raises continue
High-performing employees are receiving higher pay increases than lower-performing employees, surveys show. Top performers in 2012 saw the highest pay increase—4.4% on average—while average performers received average increases of 2%. While many employers had put compensation strategy on the back burner during the down economy, HR Consultant Amy Petrus thinks this will change: “During 2013, I think employers will need to revisit compensation structures that were designed years ago and make sure they have a sound, appropriate, market competitive vehicle to make fair and equitable compensation decisions.”

5. Bright future for IT positions
According to local and national studies, pay is steadily increasing for IT professionals. Data from the Bureau of Labor Statistics shows IT compensation trending well above average. Pay increases for IT professionals are expected to hit 5.3% in 2013, compared to the average of 3%.

Whether you are among the employers raising pay this year or not, compensation strategy is clearly reemerging as a priority for organizations as the economy improves. Make sure you are equipped to make informed compensation decisions with quick access to powerful reports. Find out more about how Custom Web Reporting allows you to create the reports you need for decision-making with just a few clicks. Or, get in touch with us to learn more.

Source: Employers Resource Council

More to Discover

Leave of Absence Policy and Acceptance Letter Template

Leave of Absence Policy and Acceptance Letter Template

Every business needs a leave of absence policy that clearly lays out how employees can apply for time away from work, and what the terms of this leave will be. There are many reasons an employee may require a leave of absence from work and while employers usually have the right to reject a request, it’s almost always the right call to allow employees to take leave.The distress and uncertainty caused by COVID-19 has only made it more important that businesses take an understanding approach to employee welfare, even if they are not eligible for FMLA leave. Whatever the reason an employee needs some time away from work, it’s important that, when accepting such a request, employers lay out exactly what it means for an employee’s status in...

Webinar: Post COVID-19: Reimagining the Future of Work

Webinar: Post COVID-19: Reimagining the Future of Work

Join us for a special roundtable discussion on what the future holds for HR leaders post COVID-19 featuring HR experts Jennifer McClure, Jon Thurmond, Wendy Dailey and Joey Price. They will discuss a variety of topics including how to navigate this new normal, new challenges facing HR leaders, personal experiences on motivating employees and keeping engagement strong and much more.

Webinar: How to Tackle HR with a Team of One

Webinar: How to Tackle HR with a Team of One

The way business leaders manage HR at their organization now can cripple or jumpstart long-term growth for their business. Watch now to discover tips and tricks on managing compliance, recruiting, performance management, training and HR technology. Register now! Speaker: Lori Kleiman Lori Kleiman is a business expert with more than 25 years of experience advising companies on HR issues. Her background as a human resources professional and consultant gives her unique insight on how HR professionals and executives can work together effectively to achieve business goals. Her programs are designed to provide critical HR updates and best practices to small businesses.

Why HR Technology Matters Now More than Ever

Why HR Technology Matters Now More than Ever

When a crisis hits, the right HR technology gives business leaders the data, tools and support they need to make important decisions quickly. In this report, Josh Bersin breaks down the four key benefits of HR technology and demonstrates through case studies how leaders can leverage it to solve problems and grow.