Pay Range Adjustments Projected to Increase in 2011

Kansas City, Kan. — The use of formal pay structures is not a new concept in corporate America. The ability to provide equal pay for equal work, without losing the flexibility to increase salaries based on a worker’s unique skills and higher education is often heralded by most companies. In fact, the 2010 BenchmarkPro survey results found 79.9 percent of companies have formal pay structures with pay ranges.

Companies periodically make changes to their pay ranges with the adjustment amounts varying by region. In 2010, organizations in the South Central and West reported the highest adjustment, 1.7 percent. Employers in the Midwest and Northeast followed at 1.6 percent, with respondents in the Southeast region reporting the lowest pay range adjustment amount, 1.5 percent.

Projected adjustment amounts also slightly differ as employers in the South Central and West report they’ll adjust pay ranges by 1.9 percent in 2011. Companies in the Midwest and Northeast are projecting pay range adjustments of 1.8 percent. Organizations in the Southeast are reporting the lowest 2011 projected pay range adjustment, 1.6 percent.

“The economic uncertainty of the last couple of years caused many companies to shy away from making any significant changes to their pay ranges,” said Amy Kaminski, director of marketing for Compdata Surveys, the nation’s leading compensation and benefits survey data provider. “Although companies are starting to regain their financial footing, increasing the adjustment amount of pay ranges will be a gradual process.”

Variations in the amount of time between pay range adjustments is evident by industry as utility companies reported only 9.7 months have passed since their last adjustment. Banking and finance organizations have not adjusted pay ranges in 13.8 months, compared to healthcare employers, 14.2 months. Companies in hospitality average more than 16 months between adjustments, while not-for-profit organizations average 17.4 months.

About the Survey
BenchmarkPro 2010 contains cross-industry data on over 300 benchmark job titles. Data was collected from nearly 4,000 employers reporting for almost 15,000 locations across the country. The results provide a comprehensive summary of pay data and pay practices with an effective date of March 1, 2010.

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 benefits surveys, contact Michelle Willis at (800) 300-9570.


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