Thanks to the stabilizing economy, the average U.S. worker can expect a modest pay-raise increase next year, and top performers can expect a slightly less modest bump as companies continue to focus on retaining top talent.
A survey on U.S. compensation planning released today by HR consulting firm Mercer reports that the average raise in base pay is expected to be 2.9% in 2014. The corresponding figures for 2013 and 2012 are 2.8% and 2.7%, respectively.
And for the cream of the workforce—the 7% that employers deem their top performers—the average pay increase is expected to be 4.6% in 2014.
“Employers recognize that their greatest challenge is to retain their top performers to avoid post-recessionary flight of these valuable assets,” said Jeanie Adkins, partner and co-leader of Mercer’s Rewards practice. “This means they have to reward and recognize them. This includes providing higher pay increases along with other noncash rewards such as training opportunities and career development.”
The latest installment in Mercer’s annual compensation survey compiles responses from 1,500 U.S. companies that employ a combined 13 million people. To learn more about the survey, visit www.imercer.com/cps or call 800.333.3070.
