NEW PROVIDENCE, N.J., Dec. 17, 2020 /PRNewswire/ -- The median projected percentage change for total salary budgets from 2020 to 2021 is an increase of 3.0%, according to XpertHR's 2021 Salary Budget Survey of 460 US employers. This increase matches the actual median percentage change for total salary budgets from 2019 to 2020.
In fact, when looking at the median percentage changes in salary budgets for individual employee groups, projected increases from 2020 to 2021 are all the same as the actual increases from 2019 to 2020.
The median projected percentage change from 2020 to 2021 for salary budgets for exempt workers is an increase of 3.0% (unchanged from the actual 2019 to 2020 increase), compared with an increase of 2.5% for nonexempt workers (unchanged), and an increase of 2.5% for officers/executives (unchanged).
"The results show that while COVID-19 has shaken the economy in 2020, employers, by and large, are planning to keep wage increases for 2021 level with those given out this year, rather than reducing raises," says Andrew Hellwege, Surveys Editor, XpertHR.
Additionally, the survey shows that recruitment/retention plays a large role in keeping 2021 wages afloat despite a difficult 2020. When asked whether 12 various factors (such as the economy, health care costs and worker productivity) would exert upward pressure, downward pressure, or no pressure at all on their organization's 2021 total salary budget, a majority of respondents (61%) cited recruitment/retention as an "upward pressure" – topping the list of positive influences.
On the other hand, the economy was the number one "downward pressure," with 43% of organizations reporting this as a negative influence on next year's total salary budget.
"While the rough economy is clearly a factor in organizations' calculations for wage increases for next year, so too is recruitment and retention, and employers appear focused on ensuring they're poised to attract and retain talent heading into 2021," says Hellwege.
XpertHR's Salary Budget Survey 2021 was conducted from October 6, 2020, to October 30, 2020, and published on November 30, 2020. The survey includes the responses from 460 US employers of various industries and workforce sizes. The total estimated number of employees of responding organizations is 841,580. The survey report covers key aspects of the salary budget-setting process for 2021 including expected increases in salary budgets from 2020 to 2021, pressures on salary budgets, timing of planning and implementing salary budgets, performance metrics, and bonuses.
XpertHR has been providing HR solutions since 2002, empowering organizations across the globe to build successful workforces and create a purposeful workplace for all. The platform delivers expert insight, trusted resources, data analysis and practical tools to help achieve greater efficiency, reduce risk and increase employee engagement. XpertHR is developing smarter data analysis tools and cutting-edge technology to support future demands on HR in an increasingly digital world. To learn more visit XpertHR.com.