According to a recent article in Workspan Daily written by Brett Christie, staff writer at WorldatWork, the projected 2020 salary budget increase will be 3.3%. Given that this comes to fruition, it will be the third year in a row that we have seen an increase: 2017 – 3.0%, 2018 – 3.1%, 2019 – 3.2% and 2020 – 3.3%.
Some other interesting compensation-related facts from the WorldatWork’s 46th “Salary Budget Survey” that Brett mentioned in his article include the following:
Merit Budgets: 2019 average was 2.9% with a projected 3.0% for 2020
Promotional Increases: Average grew to 8.9%
Salary Structure Adjustments: 2019 average was 2.2%, up from 2018 of 2.0% and a projected 2.1% for 2020
We are moving into the late summer and many of our clients are already starting their compensation reviews and formulating their budget plan for 2020. The above information can be useful data as we all prepare for 2020.