The average pay increase employees may expect in 2014 is 2.9% according to an article from CNNMoney, with the findings of Mercer’s Rewards, a consulting business. This is up slightly from an average of 2.8% in 2013. However, this is a significant increase from early in the recession when increases in 2009 were averaging 2.1%, if increases were happening at all.
These are good figures to keep in mind when putting together your compensation plans for 2014. Michigan unemployment rates are still higher than the national average, 8.8% vs. 7.3%, which means employers continue to have their pick of the talent pool without having to bust their budgets, keeping tighter reins on recruitment and retention costs.
Possessing a good compensation plan is crucial to managing your salary budget, meeting key business strategies, keeping employees satisfied in the coming year and ensuring you’re able to attract top talent with competitive compensation. If you need help making sure your salaries measure up, CU Solutions Group’s Compease can help. This compensation administration program provides the budgeting and merit increase tools your managers need to pay employees based on their performance ratings, current salary levels and experience.