Budgeted wage increases missed mark in 2017, but remained steady
- Global budget increases missed a projected 3.1% this year, but remained constant overall, WorldatWork reports. The results of the annual salary budget increase survey show a four-year plateau of about 3% for the U.S., Canada and 17 other nations.
- WorldatWork officials think the stalled budget increases could be a sign that other factors are at play. Many employers may have reduced hourly rates in anticipation of the now-stalled overtime rule. "It's possible that, with some of these changes, a flat number in salary budgets is actually a good thing," said WorldatWork's Kerry Chou, senior practice leader for compensation.
- However, the survey shows that in large metropolitan areas, budget increases surpassed the projection. Moderate increases were reported in Atlanta (3.3%), Dallas (3.2%), Los Angeles (3.2%), Portland (3.3%) and San Francisco (3.2%).
Chou expressed some surprise that employers didn't meet their projections, especially considering the low unemployment rate. And factors like the overtime rule certainly could be to blame.
But at the same time that unemployment remains near record-low numbers, employers also report creating new jobs. Economists say this means the U.S. is reaching full employment.
To stay competitive in the war for talent, experts say employers may need to re-evaluate their compensation plans, consider shifting part-time positions to full-time and take training into their own hands.
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