American companies are spending more on compensation than they have in years, but you probably have to be top performer to expect a big raise.
A study by Aon Hewitt, an international human capital and management consulting company, predicts that base pay for salaried exempt employees increased by 2.9 percent in 2015. That means base salaries will at least be keeping pace with the growth of the U.S. economy. However, variable pay increases, which includes bonuses and other incentives, will increase 12.9 percent.
Companies have long budgeted more money to bonuses than across-the-board pay raises, but the disparity between the two has become much larger in recent years. For instance, a similar survey in 1996 showed that salaries rose by 3.9 percent while bonuses rose by 7.5 percent.
Complete your profile to continue reading and get FREE access to BenefitsPRO, part of your ALM digital membership.
Your access to unlimited BenefitsPRO content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Breaking benefits news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical converage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
