Want to see if your company’s compensation package will remain competitive compared to its peers? The new 2014 Compensation Best Practices Report from PayScale features all kinds of information to clue you in on how companies plan to change – or not change – their salaries in the year ahead.
According to input from 4,738 professionals, including 1033 CFOs, the following changes are expected:
Of the companies surveyed, 88 percent say they are giving raises this year, with 77 percent anticipating that the average raise expected to measure 4.5 percent. This compares to 83 percent of employers in 2013.
Bonuses will also continue to be a key part of the compensation structure in 2014. In 2013, 54 percent of employers awarded performance-based pay increases, with incentive bonuses being most common.
However, only 26 percent of companies indicated that they were satisfied with the salary data that they use to set compensation.
In addition to higher pay scales, companies are increasingly looking to grow their ranks, with 54 percent of respondents indicating that they will be actively recruiting in 2014.
Companies plan to attract new talent by offering merit-based performance plans, as well as additional learning and development opportunities.
Despite these plans, half of companies indicated that they are struggling to fill skilled positions and 60 percent noted that employee retention was a top concern.
However, 79 percent of respondents agree that higher pay is not the main reason people begin looking for a new job, even though the chance to earn more was reported as one of the top two reasons people leave a job.
Further, despite all the talk in the media, 40 percent of companies indicated that they are in favor of passing the Fair Minimum Wage Act, which would increase the federal minimum wage to $10.10. However, 30 percent are unsure and a further 30 percent are against the proposal.
And finally, 72 percent of employers indicated that they expected their financial situation to improve this year, up from 66 percent in 2013.