“Will I get a raise? How much?” is a question on everyone’s mind at this time of year.
Since January, the press has been full of stories telling everyone to only expect a 3% raise. Well, compensation consultants hate generalities almost as much as statisticians do.
There is a reason that Commonwealth HR Consulting keeps a link to the Atlanta Fed front and center on our resource page. Not only do we think that the Atlanta Fed gets it (using a methodology developed by the San Francisco Fed), but we think this is a wonderful resource for organizations to reference based upon your location(s), labor market(s), and labor force(s).
As for that 3.0% increase? We urge you to take a look at Charts 2 and 3 at the Atlanta Fed’s site. In January, the Distribution of Individual Wage Growth showed:
25th Percentile = -2.2%
50th Percentile/Median = 3.0%
Average = 5.2%
75th Percentile = 14.0%
Chart 3 indicates that 14.9% of the group that the Fed tracks, received a 0% increase.
Some food for thought. Especially if you are an employer who is consistently giving increases to employees who have not upgraded their skills in years … and at the same pace as those employees who possess hot skills, the 14% hot skills. Read More Here