Salaries Expected to Rise 3% This Year and Executive Pay to Soar


Recent reports coming out are stating that U.S. wages and salaries are expected to be on the rise by about 3% for most workers in 2014. This new expected pay increase will marginally outpace inflation, it will pale in comparison to the average discretionary bonuses that many top executives are being awarded.

A survey performed by management consultancy, Mercer if a 1,500 midsize and large U.S. employers shows that the average base par for salaried employees is expected to rise 2.9%. That is the intent based off of what decisions are made by management. This increase in base pay is up slightly from the 2.8% it was reported to Mercer at in 2013. It is also reported that the majority of employers are said to have already made their compensation decisions for the year, so hopefully that means we will start to see those increases soon.

Wages do seem to be rising in a rather uneven fashion across most employment sectors and even among the employees within the sectors. Unfortunately this wage discrepancy is not the across the board increase that the economy surely needs. This is even truer when we consider the possible interest rate hikes that the Federal Reserve is contemplating.

Source:
Fottrel, Q. (2014, August 17). Salaries to Rise 3% this Year, While Executive Pay Soars. Retrieved August 19, 2014, from marketwatch.com

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