An article from SHRM entitled “Year-End Pay and Bonuses: More Employees Rewarded as ‘Top Performers” (subscription required) provides these statistics regarding estimated pay increases for 2005:
Average pay increases for 2005 are still projected to be around 3.5 percent. But while pay budgets remain tight overall, employers are continuing to differentiate their workforce based on performance. For 2005, according to a survey released Dec. 13 by Mercer HR Consulting, as regards average base pay increases:• Highest-performing employees are expected to receive 4.9 percent.
• Average performers are expected to receive 3.2 percent.
• Weak performers are expected to receive 1.0.
The article goes on to note, however, that pay increases for 2005 will likely be eaten up “by taxes, inflation and higher benefit insurance costs” and that many employees will be “underwhelmed” by their net increases.