Want A Raise? Merit Pay May Be Only Way

Study: U.S. Workers Can Expect Skimpy Raises In 2009 Unless They Get One-Time Compensation

(AP)  U.S. workers can expect skimpy raises in their base salaries next year, but top performers may still fatten their paychecks with merit compensation.

A study released Tuesday by Hewitt Associates, a human resources consulting firm, found base pay will rise by 3.8 percent in 2009, marking the seventh consecutive year of flat growth.

One-time performance-based pay, however, is expected to grow by 10.6 percent. That's down slightly from 10.8 percent this year and 11.8 percent in 2007.

Performance-based rewards are popular since they don't commit companies to ongoing costs, said Ken Abosch, leader of Hewitt's compensation consulting business. The survey measured one-time performance-based awards and did not include raises based on performance.

"Most of the compensation growth today comes from (one-time merit-based) pay - it accounts for almost three-quarters of the increase," he said.

That's opposed to a decade ago, when base pay accounted for the majority of yearly compensation growth, he said.

Many workers still don't realize they're eligible for such one-time bumps, however, he said. Sometimes the opportunities are only available to upper management or new hires.

The most common one-time performance-based rewards were signing bonuses (used by 65 percent of companies), followed by incentives (63 percent), special recognition awards (56 percent), individual performance awards (41 percent) and retention bonuses (39 percent), according to the study.

The vast majority of companies, 90 percent, use performance-based rewards as a way to attract talent, the study found. The findings were based on surveys with 1,073 large organizations.

The industries expected to see above-average salary increases next year are accounting and consulting (4.6 percent), energy (4.5 percent) and construction and engineering (4.5 percent).

Almost no companies are cutting salaries, although some may be reducing their head count, Abosch said.

[Syndicate]

Be the best worker you can and you can give yourself raises. How you ask? Find another job. Go climb that ladder. the guy or gal who does his work and never complains never gets a raise. You have to be a go getter. Thats why men make more than women.

[republic1776]

Bet this don''t go over well with the unions.
A raise based on merit!

[ubrew12]

"Want A Raise? Merit Pay May Be Only Way"

Three-fourths of the economic growth during the Bush Presidency went to the richest 1% of Americans.

Some of us got a raise, anyway.

rhs648 said: "[people] with greater responsibility earn more. If you are unhappy you have options of finding other employment...or starting your own business."

Maybe it''d be more direct if you told them to eat cake.

[rhs648]

So as I said, this is nothing more that the same "Trickle Down Economics" that never trickled down anywhere...


Posted by jtdev1

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Seems more like "trickle on" economics. :( On paper, the theory is passable. Decades'''' worth of reality is starting to show something different.

Posted by hypnotoad72

Most employees are paid to do a job. They are not the owners or the shareholders of the company. They are probably paid whatever the job is worth. Generally speaking, those with greater responsibility earn more. If you are unhappy you have options of finding other employment, changing careers, or starting your own business.

[u-r-right]

Same with HR. We''ve got a lady who works part-time as our HR person and she just got approved to hire an assistant to work as "the cheerleader" while she keeps a watchful eye on our insurance plan and benefits. Is this necessary for two people?

[u-r-right]

Come to think of it, it''s not only the CEO''s with the new cars but also the team of bean counters (accountants) and VP''s of this department and that department. And I work for a pretty small company of only about 300 employees.

The new trend is this cost accounting. I have to report my hours worked on each project to 2 different people...my supervisor and a bean counter. There is time and cost placed on everything we do. It seems to me there is a lot of money being wasted this way. Their jobs consist of attending meetings and making nice charts and reports. And they make more money for this. It''s just doesn''t seem right. I''d almost feel guilty if I had their job.

[scottyusa]

Big business does run this country. Wjere is Ross Perot wyhen we need him?

[toldyouso12]

What make me sick is that so so many "US" companies are subsidiaries of FOREIGN company''''s. THAT is corporate America.

Posted by B-Gene at 05:36 PM : Sep 02, 2008


That is why the United States is known as the "Great Wh.o.r.e" While most countries build in protections to ensure healthy competition and protect their domestic work force; America pimps out their technology, resources and jobs to make a buck today while individual CEOs and WAll street gets theirs--after that--when it all falls apart--they move on like viruses to the next host--and the average American worker just loses. Anything for a buck--just like a w.h.o.r.e.

[scottyusa]

Well I guess it will be a good time to be in the knee pad business eh?

[b-gene]

Merit pay? Who are you trying to kid?

There has always been merit pay - employees who did a good job received more. Only now employees who do a good job receive very little more.

Too many companies cut key employees to save a few bucks by replacing them with kids who''''ll work for nothing. It''''s bad for the company, bad for the good employee, and bad even for those kids, who are started out at a much lower rate with no mentoring. But it gives that one-time shot that accountants (and Wall Street) love so much.

What a joke.


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Posted by greeneyes222 at 05:22 PM : Sep 02, 2008

I could''nt have said it better. And as u-r-right said... the CEO''s have new car''s on a regular basis. What make me sick is that so so many "US" companies are subsidiaries of FOREIGN company''s. THAT is corporate America.