Salary increases will average only 3.5% this year and will remain at this level next year, as well, according to The Conference Board’s new salary survey. The study reports that for the third consecutive year, salary increases are below 4% as employers continue to show caution regarding salary increase budgets.
“The recovery from the economic downturn appears to be leveling off, and U.S. companies are paying close attention to cost control,” commented Charles Peck, compensation specialist for The Conference Board. “This continued caution is reflected in the pattern of salary increase budgets this year compared with last year’s projections.”
For all industries as a group, 2005 salary increases are averaging 3.5%, virtually identical to last year’s projections. This is true for all three employee groups: nonexempt, exempt and executive. More info: www.conference-board.org.