The median budget for salary increases in 2009 is projected to be 3.8 percent for exempt employees and 3.75 percent for non-exempt salaried and hourly employees, according to a new survey report.
In its survey report, the Conference Board also projects a 3.9 percent median salary increase for executives. Overall, salary increase budgets average 3.8 percent across all employee categories.
Meanwhile, the Conference Board projects a 3.4 percent rise in inflation for 2009, meaning that employers are budgeting for salary increases just slightly ahead of inflation, according to a press release announcing the survey results.
"Companies are responding to a sluggish economy by remaining disciplined on labor cost increases," Charles Peck, Compensation Specialist with The Conference Board, said in the press release. "They are aided in this resolve by moderate inflation."
The Conference Board notes that of its respondents, 250 companies responded to its survey in both 2007 and 2008. Of these, 35 percent reported lower actual salary increase budgets in 2008 than they had projected last year for exempt and executive employees.