If your raise hasn't gone to Dick Grasso, a cheaper overseas counterpart, or been frozen altogether, look no further than the star employee in the next cubicle. Oh, and his boss thanks you, too.
According to a new survey by human resources consultancy firm Towers Perrin, 85% of the companies surveyed (mostly large ones) plan to give high performers increases of 1.5 times or 2 times the average raise. Star employees and executives could receive 2.5 times or 3 times the average raise. And for companies with above-average five-year shareholder returns, total compensation packages will be even sweeter.
You're lucky to be getting anything. According to Mercer Human Resource Consulting's 2003/2004 U.S. Compensation Planning Survey of more than 1,700 companies, 12% of employers surveyed said they would freeze salaries for at least some employees in 2003.
Who is feeling the chill? If you're an executive in "computer software/services," "real estate" or "hospitality/restaurant," stock up on warm woolens.
For the rest of us, next year's projected 3.5% increases are a little better than this year's 3.3%. According to the Mercer study, executives are projected to fare the best, at 3.7%. Management and technical/professional employees can expect increases of 3.6%, and nonexempt clerical/technical employees will pocket 3.5%. Nonunion hourly employees will see their paychecks rise an average of 3.4%.
For the fifth year in a row, 72% of Mercer survey respondents are offering non-monetary recognition awards, like theater tickets or certificates of recognition for meeting certain goals. Fifty-three percent of the companies surveyed use spot cash awards, compared with 48% five years ago.
Oh how we long for 1993-2001 when annual pay raises averaged 4.1% to 4.4%.
