Raises Remain Steady Among Northeast Ohio Employers

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Post-Recession Pay Adjustments are Stable

With raises over the few years to 2014 holding steady at 3% both locally and nationally, the results of the 2014-2015 ERC Wage & Salary Adjustment Survey came as no surprise - both the actual & projected overall average adjustments in 2014's survey remained at 2.9%. Figure 1 below provides an overview of actual and projected increases in Northeast Ohio since 2004, and more specifically, illustrates this post-recession consistency from 2012-2014 (not to mention the 2.9% increase projected for 2015 in 2014’s survey).

Raises are the Norm

Of the 145 participating organizations that reported data in 2014, only 4% of the total sample indicated that they did not provide raises in 2014 and an equal percentage indicated they also would not be providing raises in 2015. As shown in Figure 2, these figures are right on target with 2013's predictions and have not only fully recovered from the recession, but have actually surpassed pre-recession levels. Ultimately, it seems that although employers are not providing larger increases in terms of percentages, at the very least some pay increase has once again become almost universally expected.
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4 Important Guidelines for Giving Pay Increases

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4 Important Guidelines for Giving Pay Increases

Pay increases are an important part of a compensation system as they aim to reward employees based on their performance achievements, but your organization should make sure you follow these four important guidelines when administering pay increases.

1. Base pay increases on your performance management and goal setting processes.

Pay increase practices should be aligned with not only your organizational culture and best practices for your organizational size and industry, but they also should align with your organization's performance management and goal setting processes to make sure that variations in employee performance are measured accurately and fairly rewarded.
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Raises Hit 3%, Projections Remain Strong

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In an economy fraught with ongoing uncertainty, Northeast Ohio employers hit a once seemingly insignificant milestone in terms of salary and wage adjustments for 2012 and 2013, 3% raises. The overall average actual and projected raises reported in ERC’s annual Wage and Salary Adjustment Survey both hit 3%, the first time both figures have reached the 3% mark together since 2008. Further optimism for 2012 can be found in projections for 2013, which indicate that of those organizations projecting raises for 2013, more than half are predicting at least 3% raises.

In terms of actual percent raises offered by individual industries, a 2012 article from Crain’s Cleveland Business cites ERC’s survey results, noting, “when it came to actual raises, service companies loosened the purse strings a little more than manufacturers.” However, there are positive signs for the manufacturing industry as well.
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