The results are in… expected salary budget increases for 2016
As Q4 of this year approaches, some agencies and consultancies have already released their results for estimated increases in salary budgets for 2016. After reviewing the forecasts, you can expect the same as last year’s results.
According to WorldatWork’s 2015-2016 Salary Budget Survey, the projected mean for total U.S. salary budget increases is 3.1 percent for 2016, barely moving upwards from 2015’s actual mean of 3.0 percent. While there are many factors that are causing a slow growth for salary budget increases, two main reasons include a lack of upward pressure on wages due to slow economic growth, and companies putting more focus on controlling their fixed costs, according to articles published online from the Society of Human Resource Management.
What does all of this mean for you, as the manager in charge of your organization’s salary budget? Organizational Architecture can assist you in planning for this coming year’s salary budget increases to ensure your total compensation and rewards philosophy aligns with your entire organizational strategy.