Both base pay increases and hiring increases are minimal this year, according to the new Compensation Planning Survey by Bucks Consultants. The survey results show that base pay increases for 2014 will remain at 3 percent for the second year in a row. This is roughly one percentage point below pre-recession levels.
The survey discovered that base pay increases vary depending upon industry: employees with particular skills and those in IT and medical professions designated larger base pay increases, while sales and engineering sectors are seeing less than previous years.
The survey, which was completed in August 2013, analyzed responses from more than 320 organizations to determine trends in compensation and other workforce issues.
Both short-term (STI) and long-term (LTI) incentives weakened with fewer employees receiving STI in 2012, the last full year this data was collected. Fewer managers and lower-level employees are expected to receive STI payouts in 2014 and the expected size of STI awards forecasted for 2014 is smaller than 2012 actual awards. The average percentage of employees expected to receive new hire LTI grants is down for most employees.
Employers seem to be more concerned with talent retention than hiring, as only 19 percent of respondents are anticipating adding workers next year. According to the survey, recruitment and sourcing talent increased in importance and surpassed employee engagement as the second highest HR priority.
The survey also designates that few employers are making changes in anticipation of the Affordable Care Act. This is possibly due to the one-year deferral of the employer shared responsibility mandate, which gives employers extra time to examine their current health insurance programs notes Tami Simon, managing director of Buck’s knowledge resource center. Only 8 percent of respondents have capped work hours of part-time employees, with an additional 12 percent considering taking this action. Eight percent are incenting employees to obtain benefits via another source, and an additional 9 percent are considering this approach.
Buck Consultants’ Compensation Planning for 2014 Survey presents comprehensive statistics on actual pay increases for 2012, current pay increases for fiscal year 2013, and planned increases for fiscal year 2014. The survey was completed in August 2013.
Pay Holding Steady – 10/9
