US: Employees to see salary hike in '10

With the economic recession expected to ease in the coming months, a survey shows that employees in the US are likely to see their salaries rise by as much as 3 per cent in 2010.

The planned 3 per cent increase in pay would be across executives, middle management, supervisory and clerical positions, global consulting firm Hay Group said in a recent report.

Reflecting improved sentiments about the economy, the likely salary hike of 3 per cent is higher than anticipated earlier, it said.

"... it (pay rise) reflects an uptick relative to a Hay Group survey in March 2009, when organisations indicated that planned salary increases were a median of 2 per cent for all employees and zero for executives," Hay Group said.

"This may indicate a positive opinion from organisations regarding the relative health of the overall economy and their organisations in 2010," it added.

Hay Group's forecast results are based on the responses from more than 400 organisations from March through June 2009.

The survey found that base salary increases are healthier in select industry sectors, such as healthcare, energy and consumer goods.

"While these numbers are lower than what we have seen in recent years, the primary concern for most employees right now is job security," Hay Group US Rewards Practice Leader Tom McMullen said.

McMullen noted that relatively speaking, a smaller base salary increase is not as much a concern for employees as is continuing employment.

"Managers are struggling with how to maintain a motivating work environment in the midst of layoffs, base salary freezes and lower bonuses.

"Recognising employees' contributions and ensuring meaningful and impactful work opportunities in a healthy work climate can go a long way in this economic environment," McMullen said.