Average Pay Increases of 3% Expected in 2015
Financial experts are saying that pay increases in 2015 are likely to average about 3% – just about the same as average increases for the last two years. Inflation is currently running about 2.1% so that means the average employees are barely keeping ahead of inflation.
Even more disappointing for workers is news from compensation consultant Towers Watson. In a recent USA Today article, the company reports that business, including small businesses, are “falling short of pay and incentive programs and are not differentiating pay for top performers as much as they have been in recent years.”
The majority of employees report not seeing a clear link between pay and performance. Laury Sejen, of Towers Watson, is quoted as saying, “Employees believe that employers are falling short in how pay decisions are made, and that there is much need for improvement.”
Here at The Payroll Department, as we provide payroll services for small businesses (less than 100 employees) we notice that employers handle pay increases and raises in their workplace their own way:
- Annual raises for all employees at one given time during the year
- Raises for promotions and bonuses throughout the year
- Few raises, but bonuses based on performance
- Raises scattered throughout the year, by department or a for a few employees each month
We never question the decisions, we just handle the changes on the payroll. And the way we handle them is accurate and professional. We make sure that all changes necessary when pay rates change are up-to-date and in place. Each detail is attended to and double-checked. Errors during a pay rate change can haunt entrepreneurs for months or even a year!
Pay rates and raises – or lack thereof – also spur employee turnover and we handle all the necessary changes for that, too.
If it has to do with payroll, and handling all the details with payroll changes, you can count on The Payroll Department!
-Elaine of The Payroll Department Blog Team
