For the seventh year in a row, U.S. employees canexpect to
see a 3 percent median base salary increase in 2018, according to
newresearch released by the Hay Group division of Korn Ferry
(NYSE:KFY).Additionally, nearly all surveyed companies (97 percent)
reported planningsalary increases in 2018.
The salary increase figure is consistent with theactual
pay increase of 3 percent reported by the surveyed companies in
2017.These projected and actual increases have remained consistent
since the end ofthe recession and reflect employers' consistent
conservative attitude towardbase salary increases.
There is also consistency across most industries
andemployee groups, with companies indicating a 3 percent median
increase acrossthe board. "I'm not surprised we are once again
seeing a 3 percent base salaryincrease this year," said Maryam
Morse, North American Rewards and BenefitsLeader, Korn Ferry Hay
Group. "It reflects our new pay reality that substantialpay growth
isn't a given."
There is some variation of practices acrossorganizations
in the survey. Organizations at the 90th percentile indicated a3.3
percent to 3.5 percent increase across employee groups, while the
10thpercentile is showing a consistent 2.5 percent increase across
all groups."While the 3 percent salary increase number has become
the norm, that doesn'tmean that top performers won't be rewarded,
which is critical in this tightlabor market," added Morse. "These
individuals often receive two times themedian salary increase of
"Companies are continuing to evolve how they
rewardemployees. They are relying more on short and long-term
incentive plans andfinancial recognition programs versus simply
providing larger annual increasesacross the board," said Morse.
"The key is for organizations to ensure they areoptimizing their
reward investment to drive performance and retain their