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

Case Study: Boulder Country Club

Case Study: Boulder Country Club

Paycor’s enhanced implementation service model creates a fast start for Boulder Country Club. “The transition to Paycor has been amazing. The hands-on guidance and support they offered during implementation saved us so much time. Paycor took control of the entire process so I could focus on other things.” - Amber Maranya, HR Director, Boulder Country Club Prior to Paycor Boulder Country Club is a private club that serves 850 members across northern Colorado and offers everything from golf and tennis to fitness and swimming. Their previous HR & payroll platform was designed for small businesses and couldn’t easily track hours worked for commissioned employees. After evaluating multiple well-known providers, HR Director Amber Maranya...

If an Employee Tests Positive for COVID-19, Here’s What to Do

If an Employee Tests Positive for COVID-19, Here’s What to Do

Everyone needs a plan to fall back on if and when an employee gets sick or tests positive for COVID-19. Below you'll find the step-by-step guide on how your company should proceed if one of your employees tests positive for Coronavirus.Get Communication Letter Template to Use if Employee Tests Positive for COVID-19 6 Steps To Take If an Employee Tests Positive for COVID-19 Offer Support We’re all moving fast in this new world and it can feel like we’re flying blind, so this is just a reminder of what you already know: if an employee lets you know they’ve tested positive for COVID-19, take a moment to be there for them. As a leader of your company, there are of course professional limitations of what “being there” means—you won’t be able...

Emergency Sick Leave for Childcare: What Employers Need to Know About FFCRA

Emergency Sick Leave for Childcare: What Employers Need to Know About FFCRA

The Families First Coronavirus Response Act (FFCRA) is a big part of the government response to the current public health crisis, offering emergency sick leave and paid family medical leave to those affected by Coronavirus. Take a look at our guide on managing employee leave scenarios.The FFRCA doesn’t just apply to employees who are directly affected by the virus—those who are infected, caring for the infected or quarantined. It also puts in place measures for the parents or guardians of children whose schools or day care facilities are closed due to the pandemic.These measures will apply from April 1, 2020 through December 31, 2020. How Does the FFCRA Work for Parents? If an employee has been on payroll for at least 30 days and cannot...

Essential Business Letter (Template)

Essential Business Letter (Template)

Many states and cities are imposing complete or partial lockdowns, with most businesses forced to temporarily shut their doors or move to remote work and only “essential businesses” unaffected. This has left many employers and employees asking what exactly counts as an essential business.Download Essential Business Letter Template What Counts as an Essential Business? On March 19, the Cybersecurity and Infrastructure Security Agency (CISA, overseen by the Department of Homeland Security) issued guidance on what business count as critical infrastructure. Some businesses are obviously essential—hospitals, pharmacies and law enforcement. The list is extensive—other essential businesses include stores selling supplies which allow people to...