Open

Employer Spotlight

Recruit Gen Y Stars

You need new tools to attract the new breed of talent - Experience will help you build your team with Gen Y stars.

Go

Ease of Use

Our management dashboard helps you easily post jobs, pinpoint targeted candidates and manage your talent pipeline.

Go

All Needles, No Hay

Don't wait for the best candidates to come to your door - with Experience, you can proactively target top talent.

Go

Build Your Experience

Experience is your most important asset - we're here to help you find that next opportunity.

Go

Tell Your Story

You're so much more than just your resume. Showcase your Experience.

Go

Connections Matter

Introductions are made easy when you have Experience -- connect with alumni, mentors and industry insiders.

Go
Forgot?

Use eRecruiting by Experience on campus?
Find your school here.

Home  > Article

What will raises be this year?

Salary.com

Beginning in summer 2001, average raises began to decrease somewhat, according to information from human resources departments as published by reputable survey companies.

Q. Assuming employees are meeting the requirements of their position, what are the new standards of annual salary increases (percentage-wise)? Also, what happens to long-term employees who are earning beyond the position's salary range, because they steadily received 4 percent increases and are now almost "overpaid"? Do they stop getting raises?

A. Each year, salary survey companies ask employers to tell them how much their merit budgets will be for the upcoming year. Most companies don't know what their merit budgets will be until sometime in the fall. Then they report those merit budgets to the survey companies. As of August 2001, Salary.com has seen some decrease in the rate of salary increases, more in the form of lower offers to new hires than in reduced budgets for merit increases, which won't appear for a few months.

The way a company handles its long-term employees normally depends on its overall compensation strategy. If a company's philosophy is to pay a competitive wage and reward high performers, then it is less concerned with whether someone is a long-term or a short-term employee. Companies normally pay the average or median market rate for employees who are fully proficient in their jobs. If an employee's performance is well above market, an employer will probably pay above the median or average market rate.

Some employees are high achievers because they have been performing a job for quite some time. Generally, companies don't want to pay such employees more than 25 to 30 percent above market because they know they can find someone to perform the same function for less money. However, if a company wants to reward its high performers whose base salaries are well above market, it can offer them lump-sum payments rather than increasing their base pay. This way, companies still reward employees who are doing a great job without increasing their fixed costs.

Good luck.

- Erisa Ojimba, Certified Compensation Professional


Copyright 2000-2004 © Salary.com, Inc.






More Related Articles


How To Look Good When the Recruiter Googles You
You'd best bet everyone at the company is not only googling you, but digging up your MySpace and your blog as well. That doesn't mean you have to stop having fun; it just means you have to take the following steps to keep what's none of their business out of their business.

Three Tips To Kick-Start Your Management Career
Going from employee to manager is like taking a quantum leap.

Did my time off affect my raise?
A low raise may not be directly related to time off from work, but it could be indirectly related if the time off caused work to slip.



Google Web Search
Didn't see what you were looking for?
 
powered by Google
Copyright ©2017 Experience, Inc Privacy Policy Terms of Service