According to SpendingPulse, Americans spent roughly 5.5% more this holiday season than last.
Could it be because they’re expecting pay raises in 2011?
Possibly. A recent Workforce Management article included results from a number of surveys which showed pay increases running as high as 3% in 2011, with an average increase of 2.7%. After two to three years of salary freezes and other human resources cost-reduction strategies, employers seem prepared to start the thawing process.
Here are a few key statistics from the Towers Watson, Mercer, Hay Group Inc. and Conference Board surveys:
- According to CPI projections by Georgia State University, pay hikes should comfortably outpace inflation rates in 2011, with a 2.8% pay raise equaling a “real” salary increase of 1.1%.
- Only 2 % of companies surveyed plan across-the-board pay freezes in 2011, down from 13% in 2010 and 31% in 2009.
- Companies continue to strengthen the link between pay raises and performance. Top-ranked talent will receive pay raises averaging 4.5% this year; average performers 2.7% raises; low-rated workers only .5% raises.
Although unemployment rates continue to remain high, the upswing reflected in these survey findings should get you thinking about attracting and retaining key talent. If your organization is not able to keep pace with 2011 pay increases, consider offering spot bonuses, flexible hours, time off or additional training/skill building to keep your best employees working for you.