2008 Salary Increase Planning
According to some recent surveys and experts, we can rest assured that our percentage salary increase next year will be about the same as it was this year. According to World at Work salary increases for 2008 will be budgeted at 3.9%. And, according to Hewitt Associates, organizations will increase pay 3.8% in 2008.
Interestingly, however, organizations have increased the percentage budget allocated to bonuses. According to World at Work, "In the 1990s, employers budgeted only about 5% of their payroll for bonuses. For 2008, companies anticipate devoting nearly 12% of payroll to bonuses — using pay as a way to retain and reward valued employees."
The good news in all of this...consumer inflation, which was 2.7% for the 12 months ending in June. The bad news, we'll likely continue to see double digit increases in health care costs.