The economic recession has forced many companies to freeze or reduce salaries over the past few years. Now that the economy has begun to recover, it is a good time to review your company’s compensation policies to ensure that you are able to retain your workforce and remain competitive when seeking new talent.
According to Career Builder’s 2011 Job Forecast:
- Forty-one percent of employers are concerned that their top talent will leave their companies once the economy improves, due to greater workloads and longer hours. Sixty-one percent intend to increase compensation for their existing workforce in 2011, up from 57% in 2010.
- Most employers estimate the average raise will be 3% or less, one in ten (10%) expect the average increase will be 5% or more.
- Thirty-one percent will provide higher initial job offers to job candidates, up from 29% last year. While most increases will likely fall within the same 1% to 3% range, 8% of employers expect to increase initial job offers by 5% or more.
If you are looking to benchmark your compensation structure, Schneider Downs can assist you. A comprehensive human resources plan includes the consideration of base salaries, as well as competitive bonus plans. We have a license to a proprietary salary database that is compiled using an extensive collection of up-to-date market data. We can research base and incentive compensation for both executive and nonexecutive positions based on industry, company size and location.
For further information, please contact Joel Rosenthal of the Schneider Downs Business Advisory Group at 412-697-5387 or email him at firstname.lastname@example.org.
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Schneider Downs provides accounting, tax, wealth management, technology and business advisory services through innovative thought leaders who deliver the expertise to meet the individual needs of each client. Our offices are located in Pittsburgh, PA and Columbus, OH.
This advice is not intended or written to be used for, and it cannot be used for, the purpose of avoiding any federal tax penalties that may be imposed, or for promoting, marketing or recommending to another person, any tax-related matter.