It’s time to plan your company’s 2019 budget, and you may be wondering how much talent will cost you in the New Year. Although small, U.S. employees can expect to see pay increases of around 3% in 2019. As the War for Talent continues to ramp up, it appears U.S. employers are using incentives beyond salary increases to help attract and retain top talent. According to the Worldatwork 2018-2019 Salary Budget Survey, U.S. salary budgets are projected to increase modestly by an average of 3.2% in 2019, up slightly from 3.1 % in 2018. Companies are continuing to leverage a variable pay rate related to performance when determining raises.
According to the Worldatwork Survey, 2018 pay increases were:
- 2.8 percent for middle performers (69 percent of workers)
- 4.1 percent for high performers (25 percent of workers)
- 0.6 percent for low performance (6 percent of workers)
Wills Towers Watson found that non-exempt salaried employees have the highest possible rating with an average of 4.6% while average performers had an average increase of 2.7%.
Is Pay Remaining Stagnant?
It may seem surprising that the average pay increase in 2019 is projected to be just .01% higher than the typical company’s budget increase. Given headlines heralding an economy on the bounce back, record low unemployment, and signs of a healthy job market, wages remain surprisingly stagnant.
However, 2019 is projected to be only the second year in the previous five that average pay increases hit 3% or higher, and 2018 was the first time in four years that recorded U.S. salary increases met the year’s projections. Salaries may prove to be the last holdout in a recovering economy.
Do You Have a 2019 Workforce Plan?
Will you need new talent in the New Year? Don’t wait to plan for your company’s staffing needs. Develop a workforce plan and polish your recruiting pitch now to attract and retain top talent. In today’s competitive job market, employers need more than a job posting to bring in qualified candidates; they need a strategy, careful planning, and workforce plan. Learn how to develop your own workforce plan, pitch your company, and hire top talent in 2019 with Scholley Bubenik’s white paper, How to Win the War for Talent.