Companies Reveal Plans for Next Year's Raises
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Workers may be bringing home a little more in their paychecks in the next year. New research is projecting an average increase of 3 percent in companies' employee salary budgets in 2013, the same as this year.
Most of the U.S. and Canadian companies (71 percent) surveyed by Kenexa, a provider of human resources and business solutions, said their budget for salary increases will remain the same in 2013, but 22 percent said they expect to see even more money dedicated in the coming year to salary increases.
The average budget increase of 3 percent is still down a percentage point from pre-recession salary increases.
Workers in certain specialized industries have come to expect above-average salary increases. This year, salaries for workers in the biotechnology industry rose 3.5 percent, while workers in the software and networking industry saw increases of 3.1 percent.
Workers in the education, nonprofit and government organizations and the construction industries looked at salary increases of 2.5 percent, the researchers found.
"Since increase budgets bottomed out in 2009, many organizations have been looking forward to the time when they would get back to normal," said Zahir Ladhani, head of Kenexa’s compensation business unit, which conducted the research. "With increase budgets in North America hovering around the 3 percent mark for two years running, it appears as though we have now achieved a new normal. Budgets such as these will continue to put pressure on organizations to ensure that they are paying competitively and retaining their top talent."
The research was based on responses from 1,186 companies in the United States and 176 companies in Canada representing a variety of industries, sizes and locations.