Planning your 2016 salary budget and updating your salary administration program
As we shared in our previous blog post, the projected 2016 U.S. salary budget increases are staying flat at about 3.1 percent. In addition to planning to increase their salary budgets next year based on these data, organizations may also advance their salary grades in response to the changes in market data to stay competitive in the market.
The WorldatWork 2015-2016 Salary Budget Survey projects a median salary structure increase of 2.0 percent for 2016. Using this figure as an example, an organization would adjust their range midpoints or other control points, as well as the range minimums and maximums by the 2.0 percent adjustment. While this adjustment may not have a big impact on individual salaries, it is still a good tool for organizations to manage their pay structure relative to what is happening in the market in regards to compensation.
If your organization is having trouble determining what method is best to reward its employees, Organizational Architecture can develop a total compensation program that is competitive for current and prospective employees, but also aligns with your entire organizational strategy.