The economy is generally strong and low unemployment rates mean some organizations are scrambling for workers. But most companies are not planning to spend more on pay increases in 2018, according to a new survey.
Employers are prepared to open their checkbooks a bit wider to reward top performers, according to the global consulting firm Willis Towers Watson, which surveyed 819 U.S. companies in a range of industries from April through July.
Of companies surveyed, 99 percent expect to grant raises next year, according to a summary by Willis Towers Watson. The average 2018 raise forecast for most employees, including both professional and nonexempt workers, was 3 percent — the same as the average raise given in the last three years. The average expected raise for executives is about the same — 3.1 percent.
“Most companies are not under any significant pressure to increase their salary budgets in the near term,” said Laura Sejen, Willis Towers Watson’s managing director for human capital and benefits, according to a company announcement.
Employers continue to offer performance bonuses to their most valuable players, the survey found. Among companies surveyed, top performers received raises of up to 4.5 percent. Willis Towers Watson found some companies surveyed base their bonuses not only on performance, but on professional development.
“While organizations may be forecasting 3% increases, the landscape of how and when they are giving increases varies considerably,” said Sandra McLellan, North America rewards practice leader at Willis Towers Watson, according to the company announcement.