The research found that the median base salary will increase at an average of 3 percent across most industries, including chemical, consumer products, financial services, health insurance, industrials and utilities.
The figures are largely the same across executive, management, professional, clerical and operations roles.
“With typical base salary increases still below pre-recession levels, organizations are walking a fine line between maintaining a focus on managing their labor costs given the mixed economy, while also improving employee engagement and retention levels,” said Tom McMullen, Hay Group’s North American reward practice leader. “As the economy continues to improve, labor markets will heat up, particularly for high demand roles, making it crucial that companies take steps today to secure long-term commitment from their best talent.”
However, the oil and gas industry came out on top with an anticipated median base salary increase of 4 percent. And contrary to popular belief that the medical field will always stay on top, the study found that hospital employees will be able to expect an increase of only 2 percent for most employee groups in 2015.
“Sectors with increases that vary from the general industry outlook have tended to also show varied historical and future business performance outlooks,” said Jeff Blair, Hay Group’s U.S. productized services leader. “In most industries, however, we see significant employee flight risks given the improving economy and more employment opportunities for skilled workers. Employers will have to manage this risk, focusing on high potentials and employees with mission-critical skills and roles to ensure they don’t end up without the talent required to achieve future growth.”
Hay Group’s forecast results are based on the latest data available from Hay Group’s U.S. database, provided by more than 400 U.S. organizations from March through June 2014. This is Hay Group’s 35th year of conducting the survey.
Sourced from statejournal.com August 8th, 2014