Free Special Resources
Get Your FREE Special Report. Download Any One Of These FREE Special Resources, Instantly!
Featured Special Report
Claim Your Free Cost Per Hire Calculator
This handy calculator lets you plug in your expenses for recruiting, benefits, salaries, and more.

Graphs automatically generate to show you your annual cost per hire and a breakdown of where you are spending the most money.

Download Now!
July 20, 2004
Employers Remain Cautious About Pay Raises
Employees looking for larger pay raises than those they received last year will have to wait another year, according a survey by Mercer Human Resource Consulting.

For a Limited Time receive a FREE Compensation Market Analysis Report! Find out how much you should be paying to attract and retain the best applicants and employees, with customized information for your industry, location, and job. Get Your Report Now!

The survey found that employers plan to grant average pay increases of 3.3 percent this year, the same as they granted in 2003. For 2005, employers are budgeting average pay increases of 3.5 percent, according to the survey of 1,600 employers.

"The year 2005 will mark the fourth consecutive year that pay increases have averaged less than 4.0 percent," says Steven E. Gross, leader of Mercer's compensation consulting practice. "From 1994 through 2001, annual pay increases ranged from 4.1 percent to 4.4 percent, but they dipped below 4.0 percent in 2002 and have remained there since. Employers are seeing some signs of an improved economy this year, but they're not ready to commit to higher pay increases yet."

The survey found that fewer employers are freezing pay levels this year. The number of employers reporting salary freezes for one or more segments of their employee population fell from 16 percent in 2002 and 12 percent in 2003 to just 5 percent in 2004.

With an improving economy, employers are focusing on attracting and retaining employees, according to Gross. He says companies have changed their strategies since the 1990s.

"Employers learned an important lesson in the late 1990s when the labor market was so tight," Gross says. "Today, instead of attempting to grow revenue by 'buying' the right talent on the market, companies are focused on building talent from within. They are taking a long-term development approach."

Featured Free Resource:
Cost Per Hire Calculator
Twitter  Facebook  Linked In
Follow Us
Copyright © 2018 Business & Legal Resources. All rights reserved. 800-727-5257
This document was published on
Document URL: