In 2012, workers can expect an average pay raise of 2.8 percent, compared to 2.7 percent in 2011 and 2.9 percent in 2010, according to a survey conducted by Buck Consultants.

The survey, Compensation Planning for 2012, also reveals that pay-for-performance continues to be critical, especially considering the importance of effectively managing budgets to retain top performers. In fact, 80 percent of respondents follow a pay-for-performance philosophy; however, this is down from 87 percent in 2010.

"Our research into pay practices reveals that most employers plan to hold the line similar to 2011," says Stephen Mork, principal at Buck Consultants. "Given the slow economic recovery and stubborn unemployment rate, organizations are taking a cautious and conservative approach to compensation planning to stay within their payroll budgets."