Are you hoping for a big raise or bonus next year? Prepare to be disappointed.
A survey by human resources consultancy Aon Hewitt predicts base salaries and bonuses for U.S. workers won’t budge in 2017, despite a better job market that would seem to prompt employers to shell out more to compete more for talent.
The forecast, based on a survey of 1,074 U.S. companies, finds the percentage of payroll budgets that companies plan to spend on bonuses will be flat year-to-year, with 12.8 percent of corporate payroll going to “variable pay.” Budget increases for raises are forecast at just 3 percent.
“It’s a little counterintuitive, given the strengthening economy and job creation numbers,” says Ken Abosch, who leads Aon Hewitt’s compensation practice. “It’s indicative of the pressure organizations are under to keep the lid on fixed costs.”
While that 3 percent is slightly higher than the actual 2.8 percent increases companies doled out in 2016, according to Aon Hewitt’s survey, it won’t be surprising if the actual 2017 numbers don’t reach the prediction. Companies “haven’t hit that number in five tries,” Abosch said, referring to the past few years. “I thought we had a decent shot this year, but the oil industry got hit very hard.”
Research also found 10 percent of companies have frozen salaries, up from 6 percent in 2015. A struggling energy sector explains the jump, said Abosch, who expects those numbers to decline in the coming year
— Washington Post
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