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Pay Increase Budgets Hold Steady for Insurance Companies
Kansas City, Kan.— Although the economy is still struggling to make significant strides towards recovery, small improvements are starting to become more evident. The 2011 Compensation Data Insurance survey results found pay increase budgets remained steady at 2.8 percent. From 2008 to 2010, pay increase budgets fell one percent, going from 3.8 percent in 2008 to 2.8 percent in 2010. Pay increase budgets are projected to increase slightly in 2012 to 3 percent.
“There appears to be a level of cautious optimism within the industry in regard to the economy,” said Amy Kaminski, director of marketing for Compdata Surveys, the nation’s leading pay and benefit survey data provider. “Employers are taking a conservative approach, and we expect only a gradual increase over the next few years.”
Companies use pay increase budgets to make a number of different increases to their employees’ salaries. More than 72 percent of insurance organizations are allocating a portion of their budget to make market adjustments. Just over 45 percent are offering merit increases, while 14.2 percent are making cost of living increases. Only 13.2 percent of survey respondents are utilizing their pay increase budget for promotional increases.
The rate at which these increases are used varies by industry. Merit increases, for example, are being offered by carriers at a rate of 49.6 percent, while 36.2 percent of agents, brokers and service providers are using them. The average merit increase budget reported in 2011 was 2.7 percent, with insurance companies projecting them to increase to 2.9 percent in 2012.
About the Survey
Compensation Data 2011 Insurance surveyed more than 100 industry-specific job titles and 350 benchmark titles ranging from entry-level to top executives. Data was collected from 210 insurance employers reporting on nearly 1,750 locations across the country. The results provide a comprehensive summary of pay data, benefit information and pay practices with an effective date of January 1, 2011.
Compdata Surveys is the nation’s leading compensation and benefits survey data provider. Thousands of U.S. organizations provide data each year ensuring the reliability of our results. Compdata Surveys has been providing comprehensive data at affordable prices to organizations from coast to coast since 1988. For further information about their compensation and benefit surveys, contact Michelle Willis at (800) 300-9570.