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).

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.

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.