CAI Survey Finds Top Performers Getting a Bigger Slice of Salary Budgets

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sherry for newes.jpgCAI recently released results of the statewide 2015 NC Wage & Salary Survey. This year’s survey is loaded with valuable information – and new for this year – visuals. If you did not participate, you can purchase the full report on CAI’s online store. You won’t want to miss having access to this report. In fact, why not ensure that you are included as a survey contact for the 2016 survey? That way, play, don't pay. 

 

This year’s survey found that average base pay increases for 2015 are about 3%. To be exact, participating employers reported, on average, an increase of 3.0% (excluding zeros) for nonexempt employees and 3.1% (excluding zeros for exempt employees.  National survey houses are reporting about the same (here is a recent discussion on this topic from the CAI Surveys Group). Does this 3% slide either way when we look at TYPE of increase? Surprisingly, not really. Extra analysis shows that for the 82% of employers who reported they give performance-based merit increases, the average raise is 3.0% for nonexempt and 3.2% for exempt. In turn, for the 27% of employers who reported they give across the board increases, the average raise is 2.9% for nonexempt and 3.0% for exempt.

 

We know some employers are giving greater than 3%. Let’s take a closer look. While half of participating employers reported a 3.0 to 3.99% increase for nonexempt and exempt EEs for 2015, a significant number reported giving an increase of 4% or more. About 12% of employers gave an increase of 4% or more to nonexempt EEs; about 17% gave an increase of 4% or more to exempt EEs. So what did they give? The average increase for those giving 4+% to nonexempt EEs is 5.4%. The average increase for those giving 4+% to exempt EEs is 5.2%.

 

This year a new question was added about how employers are allocating their salary budgets – are top performers positioned to receive more? In a word, yes. Nearly half (47%) of employers said they allocate a larger portion of the salary budget to high performers. About 3% said their entire budget is allocated to high performers only. Another 4% have a freeze in place except for high performers. About a quarter (26%) of employers said they allocate the same increase to all employees.

 

Want to know more about pay per performance and range of pay for top performers? A special feature of the CAI Pay Trends Survey coming in early October (besides being a 6 month update to the 2015 NC Wage & Salary Survey) is the focus on performance-based pay. I don’t know a better way to start your salary budget planning process. Well, maybe a la mode  ...

 

Don’t miss the CAI Pay Trends Survey scheduled to open in October. If you’re unsure about your organization’s designated survey contact, send an email to the CAI Survey Team today. Let's work together to grow this suite of reliable, local market data.

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