Sources: Hay Group, posted January 2014: Forecasted 2014 US base salary increases remain stable, while employees see net gains, new Hay Group research finds SHRM, posted November 2013: Pay Trends for 2014: Salary Increases Hold Steady Kiplinger, posted February 2014: Look for Another Modest Pay Raise in 2014 USA Today, posted February 2014: Falling unemployment rates promise to shift wage leverage from employers to workers.
Wage trends and predictions for 2014
Most analysts are predicting modest wage increases for 2014
US employees can expect median base salary increases of 3.0% in
2014, according to several industry studies including Hay Group
and Society for Human Resource Management (SHRM).
The 3.0% median base salary increase holds fairly steady across
most industries, including chemical, consumer products, financial
services, health insurance, hospitals, industrials and utilities, with
the exception of the oil and gas sector which can expect median
pay increases of 4.0% in 2014.
Projected increases for starting salaries are also on the rise in
2014, especially for workers with scarce or specialized skills.
Wage increases aren’t necessarily equal
More and more companies are tying wage increases to
performance rankings, giving top rated employees higher increases
than their lesser rated peers. Talent retention remains a top human
resource priority. In most industries, studies point to significant
employee flight risks given the improving economy and more
employment opportunities for skilled workers.
Geography can also impact differences in wage increases. National
unemployment continues to fall, down to 6.6% in January. But many
metro areas around the country have considerably lower
unemployment rates and have reached “full employment” at about
5.5% shifting salary leverage to workers. For example, a Federal
Reserve survey this month reported "moderate" wage pressures in
Minneapolis, where unemployment is now 4%. In Dallas, where
unemployment is 5.6%, reports of pay increases and wage
pressures have increased.
Sources: Assorted articles and survey’s from Hay Group, SHRM, Kiplinger's, USA Today.