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January 28, 2010
Higher Salary Increases Were Predicted for U.S. Cities in 2010

In a BLR webinar entitled "Where's My Raise? How to Handle Tough Pay Conversations With Employees," Theresa Murphy of HR Partner Advantage and David Wudkyka of Westminster Associates revealed that workers in some major U.S. cities may have seen higher salary increases in 2010 than the national average. These cities include Houston (3.4 percent), Minneapolis/St. Paul (3.0 percent), Washington DC (3.0 percent), and Des Moines (2.9 percent). The cities projected to have the lowest increases next year are Detroit (2.1 percent), Los Angeles (2.2 percent), and San Francisco (2.4 percent).

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Industries projecting above average salary increases in 2010 included energy (3.7 percent), and food/beverage/tobacco (3.1 percent). The industries with the lowest expected increases are industrial machinery/equipment (1.6 percent), education (2.0 percent), and automotive/vehicle manufacturing (2.1 percent).

"Regional salary increase trends are largely driven by factors, including economic conditions, demographics and market issues, so it's not surprising to see lower-than-average salary increases in industries and cities with high unemployment levels or that have been significantly impacted by the economy," said Ken Abosch, leader of Hewitt Associates' North American Broad-Based Compensation Consulting business.

Theresa Murphy is the principal consultant for HR Partner Advantage, an independent human resources advisory firm based in Raleigh, N.C. She may be contacted at tmurphy@hrpartneradvantage.com. David Wudyka is the founder and managing principal of Westminster Associates, a Massachusetts-based human resource and compensation firm that specializes in pay, performance and productivity issues. He may be contacted at dwudyka@westminsterassociates.com .

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