Merit Pay Differentiation Trends
As part of its 2007/08 U.S. Compensation Planning Survey, Mercer HR Consulting reports information on differentials in performance-based salary increases for 2007. According to Mercer's survey, the highest performing employees are expected to receive base pay increases of 5.7% in 2007, compared to 3.5% for average performers and 1.7% for the weakest performers.
More details on merit pay differentiation from the survey are presented below:
Average pay increase percent by rating group
- Highest-rated employees (12% of workforce): 5.7%
- Next highest-rated employees (28% of workforce): 4.5%
- Middle-rated employees (52% of workforce): 3.5%
- Low-rated employees (6% of workforce): 2.0%
- Lowest-rated employees (3% of workforce): 1.7%
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