01 Sep, 2021, 08:30 ET
WALTHAM, Mass., Sept. 1, 2021 /PRNewswire/ -- Salary.com's Annual U.S. National Salary Budget Survey reveals that 41 percent of organizations plan on having a higher salary increase budget in 2022 than they did in 2021, representing the first significant shift in merit increases in the last 10 years of survey data. For perspective, last year just under 10 percent of organizations planned a higher salary budget increase than the prior year. The survey was conducted in June of 2021 by Salary.com, the leading SaaS provider of cloud-based compensation market data, surveys and analytics.
The 2-3 Percent Raise is on the Decline
While the prevailing salary increase rate remains at three percent, the percent of organizations giving 2-3 percent increases has dropped to its lowest point since 2019.
For 2022, 12 percent of organizations intend to give 4-5 percent increases, versus just 7-8 percent of organizations in 2021. Of note, these 4-5 percent planned increases hold steady across all job categories, from hourly employees up to the executive level.
"This is the first sign of a notable shift in salary budget increases in 10 years, particularly for hourly employees who have long experienced stagnant pay," said Chris Fusco, Senior Vice President of Compensation at Salary.com. "Minimum wage legislation sweeping the country is a big factor. But the reemergence of lower level workers executing their market power is undeniable. Aging Baby Boomers and pandemic-related worker shortages have created this scenario where we have more jobs than we have people willing, or able, to work."
Other categories in the survey, such as variable pay and salary structure increases, fell in line with data from prior years, In terms of pay practices, the vast majority of organizations surveyed utilize a common date for employee pay increases (86 percent), with the months of January and April serving as the most popular months.
To view more data from Salary.com visit: Salary.com Surveys & Consulting | Salary.com
National Budget Survey Methodology
Over 900 human resource professionals across 20 diverse industries (including healthcare, manufacturing, financial services, retail and wholesale, hospitality and leisure, and education) participated in this year's survey, which closed June 30, 2021. Now in its 10th year, Salary.com's U.S. and Canada National Salary Budget Survey is designed to collect critical data on how organizations are budgeting for salary increases over the next year and provides insight into current variable pay practices.
Salary.com is the leading SaaS provider of compensation market data software, and analytics, bringing more of the trusted data and intuitive software organizations need to get pay right. The industry's fastest-growing compensation management company, Salary.com serves over 30,000 survey participant organizations, over 8,000 business-to-business software subscribers, and over 45 million employees globally. For more than 20 years, Salary.com has empowered confident decisions by aligning compensation practices with recruiting, performance, and development initiatives through easy-to-access data and meaningful insights.
The market-leading CompAnalyst ® SaaS platform accelerates compensation workflows, delivers real-time data, and powers accurate, equitable, and competitive compensation. Through its Salary Wizard and pioneering website, Salary.com delivers continually updated, reliable market pay data and career content to over 30 million visitors each year. For more information, please visit the company website at www.salary.com.
SOURCE Salary.com, Inc.
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