Most Employers, Including Fls, Plan 2021 Salary Raises
The 2020 General Industry Salary Budget Survey, conducted by Willis Towers Watson Data Services, found companies are projecting average salary increases of 2.8% for all employees next year, including exempt, non-management and management employees. Nonexempt salaried and hourly employees as well as executives are in line to receive slightly smaller increases (2.7%).
“This has been the most challenging compensation planning year for many companies since the Great Recession,” Catherine Hartmann, North America Rewards practice leader at Willis Towers Watson, said. “However, unlike then, companies have been hit differently depending on their industry, the nature of how work gets done and the type of talent they need. While many companies managed to avoid cutting salaries during the pandemic, most have reduced the size of this year’s salary budgets and are holding the line on increases for next year. At the same time, companies continue to embrace variable pay and other reward initiatives to recognize and help retain their best performers.”
The survey also found three out of four companies are planning to award annual performance bonuses next year, roughly the same percentage as this year.
