New Pay Adjustment Projections Line Up With 2012 Data

Share on LinkedIn Share on Facebook Share on Twitter Share on Google Plus Share this Page

Based upon the results of the 2013 ERC Pay Adjustment & Incentive Practices Survey, many Northeast Ohio employers are approaching their compensation decision making plans from a very similar, if not slightly more fiscally conservative viewpoint as in 2012.

After hitting an average wage and salary increase projection of 3.0% in 2012, pay adjustment projections remain largely in line with this same number for 2013. However, within certain employee groups and breakout categories; most notably among executive employees, larger organizations with more than 200 employees, and non-profits; 2013’s projected increases dipped by as much as 0.3% from 2012’s projections. Conversely, smaller organizations with 1-50 employees and other non-manufacturing organizations saw the strongest increases, particularly among the exempt supervisory, management, and professional employee group.
Read this article...

Where Do Pay Adjustments Come From?

Share on LinkedIn Share on Facebook Share on Twitter Share on Google Plus Share this Page

As reported in Crain’s Cleveland Business in September of 2012, Northeast Ohio employers both gave and are projecting giving an average of a 3% increase across all job categories in 2012 and 2013, respectively. But how are these increases determined and what do they mean in terms of an overall investment by the organizations offering raises?

While the ERC Salary & Wage Adjustment Survey itself does not report on these specifics, it does specify that that this 3% increase accounts for any pay adjustment given during a 12 month period and could include any adjustments from general across-the-board or cost-of-living adjustments to merit based raises. Some additional insights can be drawn from another ERC survey published in early summer of 2012, i.e., the 2012 Pay Adjustment & Incentives Practices Survey. According to this survey, merit based increases are by far the most common method of determining increases here in Northeast Ohio, approximately 80% of respondents. Of those organizations providing merit based increases, a wide majority do so on an annual basis regardless of organizational size or industry type. Interestingly, cost-of-living raises were the least popular type of adjustment, coming in at just under 7%.

Based on ERC’s historical data trends for the Pay Adjustment & Incentive Practices survey, this strong preference for merit based pay adjustments is far from surprising. However, a steady decrease in cost-of-living pay adjustments over the past several years accompanied by a corresponding increase in the frequency of merit-based raises offers a clear illustration of the continued move towards pay-for-performance.

View ERC's Wage & Salary Adjustment Survey Results

The survey reports data from Northeast Ohio organizations regarding their actual and projected wage and salary adjustments.

View the Results