“In 2009, employers gave increases of only 2.1 percent,” reports Joseph Kilmartin, managing director of compensation consulting at Salary.com. Salary freezes, which spiked to 48 percent of employers in 2009, are anticipated to decline to 13 percent of employers in 2010, according to Hewitt Associates.
In 2010, salaries are expected to rebound only slightly. Executive employees are projected to receive salary increases of 2.6 percent in 2010 compared to 1.4 percent in 2009. Salaried non-exempt employees can also expect an increase of 2.6 percent in 2010, up from 1.9 percent in 2009. Salary increases for non-union hourly and union workers are projected to be 2.7 percent in 2010, compared to 2.0 percent and 2.2 percent respectively in 2009.
Industries projecting above-average salary increases in 2010 include energy (3.7 percent) and food/beverage/tobacco (3.1 percent). The industries with the lowest expected increases are industrial machinery/ equipment (1.6 percent), education (2.0 percent) and automotive/ vehicle manufacturing (2.1 percent).
“Even during past economic downturns, we have not seen such dismal salary increases as we did this year—it truly is unprecedented,” says Ken Abosch, leader of Hewitt’s North American Broad-Based Compensation Consulting business.
View the complete report at: http://www.hewittassociates.com/intl/na/enus/AboutHewitt/Newsroom/PressReleaseDetail.aspx?cid=7126.