In a just released update to its 2009/2010 Salary Budget Survey (originally conducted last April), WorldatWork reports a 0.3 percentage point decrease to 2010 salary increase budgets - from an average of 2.8% to 2.5%. The new data confirm that employers remain cautious about investments in base salaries, with increase levels recovering at an even slower pace than originally predicted.
Faced with tight salary increase budgets, participating employers confirm that they are looking for other ways to reward employees.
% of employers providing/enhancing:
- Career development opportunities (33%)
- Noncash rewards and recognition (28%)
- Leadership training on employee motivation (21%)
- Flexibility options (20%)
- Monetary rewards (I assume of the non-salary variety) for high performers (19%)
- Monetary rewards (ditto above) for mission critical talent (15%)
I'm pleased to see that recognition remains so high. For no cost at all, employers can encourage a culture in which saying thanks becomes common. For an investment of just 1% of payroll, employers can make that culture of recognition strategic, measurable and truly impactful in increasing employee engagement and productivity.
Posted by: Derek Irvine, Globoforce | January 23, 2010 at 10:37 AM
Derek:
Good observation - the recession has forced all of us to think more critically, and expansively, about the true nature of what attracts, motivates and retains employees.
Thanks for the comment!
Posted by: Ann Bares | January 24, 2010 at 12:24 PM