While many employees may feel that their wages have been stagnant for the last couple of years, in fact the average U.S. workers base salary increased 2.4 percent in 2010, and is expected to increase 2.8 percent in 2011. These statistics are based on information from a survey conducted by the Hay Group.
Executives’ increases for 2011 are predicted at 2.7 percent, and those in management and supervisory positions should be slightly higher.
According to Tom McMullen, Hay Group’s North American Reward Practice Leader, "Relatively speaking, a forecasted median 2011 base salary increase of 2.8 percent is good news for employees who, over the past two years, saw the lowest salary increases in decades." Along with this, McMullen added more good news, “Hay Group's survey also points to a positive trend in organizational staffing."
Putting a slight damper on this good news, according to the survey some businesses are still struggling and expect to continue cost reduction steps. These steps will include pay freezes, retirement benefits reductions, and even some salary cuts.
While in general salary predictions for 2011 are encouraging, business leaders still need to provide additional compensation for employees. A proven strategy for this endeavor is the initiation of rewards programs and other initiatives. Numerous studies have found these strategies to be effective tools in enhancing employee satisfaction, leading to enhanced loyalty toward the company, resulting in increased productivity.