Pay Increases & Trends for 2016

pay(Post by Rick Dacri, November 2, 2015)

Pay increases for 2016 are expected to remain at 3%, the same as 2015 and up from 2014’s 2.5%. Exceptional performers are likely to enjoy increases in the 4.5% range.

Regionally, wages should be higher in the Northeast. Critical, hard to find and retain positions, such as electric and software engineers, line workers, nurses and IT will demand and get more.

Employers continue to find it difficult to recognize and motivate workers with merit budgets of only 3%. It is nearly impossible to differentiate between good and average performers with so little money. As a result, more are turning to annual short term incentive plans. These plans can quickly put cash in worthy employee’s pockets and not impact base wages. Employers are also putting more dollars into benefits, particularly into supplemental retirement plans for “older” workers.

In addition to compensation, companies are relying upon non-monetary rewards including career development, education and more exciting and challenging work assignments.

If you would like to explore options for your company, call me at 207-229-5954 or rick@dacri.com.

Other posts you may like:

  1. Compensation Trends & Pitfalls (Webinar)
  2. Overtime Eligibility to Double: Prepare for Changes
  3. FLSA: Record Keeping Requirements
Advertisements

1 Comment

Filed under Compensation, Compliance

One response to “Pay Increases & Trends for 2016

  1. Pingback: Are Your PTO Benefits Competitive? | Uncomplicating Management

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s