U.S. workers can expect median base salary increases of 2.8% in 2011, compared to 2.4% in 2010, while executives and skilled trades workers can anticipate a 2.7% increase, according to the Salary Budgets Survey by the Hay Group.
“Relatively speaking, a forecased median 2011 base salary increase of 2.8% is good news for employees who, over the past two years, saw the lowest salary increases in decades,” says Tom McMullen, a practice leader of Hay Group’s North American unit. “We found that the number of organizations increasing their staffing levels is double that of organizations that are decreasing their staffing levels.”
Still, some companies struggle to design a strategic salary budget that aligns with corporate objectives. In the survey, top performers will receive increases of 3.1%, compared to the 2.8% increase for all employees.