Salary increases are expected to continue their slow trend upward next year. Data from WorldatWork indicates that organizations are budgeting increases in the 4.3 to 4.8 percent range for 2000, and are expected to be the about the same in 2001.
BETHLEHEM, PA--The average salary offers to petroleum, computer, and chemical engineering graduates all stand at $49,000 and above, but a recent survey by the National Association of Colleges and Employers (NACE) shows that students from a wide variety of disciplines are getting top dollar.
Proxy statements for publicly-held corporations will reveal four important trends in executive compensation, according to James A. Knight, a partner with SCA Consulting and an expert in the relationship between compensation and corporate performance.
Late last week the Commerce Department reported the fastest growth rate for the economy in more than three years a 6.9% annual growth rate in the fourth quarter of 1999. The size of the revised figures for Gross Domestic Product surprised analysts, who had not expected the growth to be that sizzling. The rate tied growth rates in 1996, and is second in recent history to a 7.2% rate in 1987. Donald Fine of Chase Asset Management described the figures as showing the economy as "screaming ahead."
Business commentators consistently express their astonishment at how restrained salary increases have been in the face of a boom economy and nearly full-employment. The real answer is that in selected segments, wage inflation is soaring. Two examples found in yesterday's press point this out: one for law firm associates, the other for mid-level Public Relations staffers.
By one estimate, up to 25 million people lack bank accounts. As a result, they must carry their wages with them, in cash. Besides being dangerous and inconvenient, it often requires using expensive check-cashing services.
Many experts are concerned that the current mania over employee stock options is way out of control; both working against its intended purposes and possibly endangering the economy.
In the case of IT workers, survey results support the conventional wisdom that moving to a new company is the best way to get the biggest salary increase -- in most cases.
While it's important to plan on an overall pay budget increase for your organization, it's also critical to have an understanding of pay trends for different categories of workers.
