Survey Predicts Slight Increase in Wages in 2019
According to a recent survey of hundreds of US employers across multiple industries, wages for management, non-management, and hourly workers are predicted to rise slightly in 2019.
Willis Towers Watson Data Services recently released the results of their 2018 General Industry Salary Budget Survey, which found that employers surveyed are planning around a 3% increase in pay for employees, and only a small percentage of employers (also 3%) are planning on freezing salaries in 2019.
The survey also found that employee performance plays a significant role in whether or not a pay increase is granted, and that will remain the case in 2019. For example, the employers represented in the survey reported rewarding their high-performing “star” employees” with an average salary increase of 4.6% this year, which is 70% higher than the pay increase granted to employees who only receive an “average” rating.
Sandra McLellan from Willis Towers Watson says that, “After a decade of consistently flat pay raises, we are witnessing a slight uptick as companies are feeling pressure to boost salaries, given the low unemployment rate and the best job market in many years.”
As McLellan points out, the tight labor market has created a landscape for many industries in which employers are finding it increasingly difficult to retain top talent over time. Emboldened by a healthy job market, job seekers “are more willing to change companies to advance their careers and to talk openly about their pay.”
As a result, she says, “organizations are facing increased pressure entering next year to devise a focused strategy and plan on how to allocate their precious compensation dollars or risk losing some of their best talent.”