Benefits and Compensation

3% Base Salary Increases for 2016 Make Employee Engagement a Challenge

For the fifth year in a row, U.S. employees can expect to see a moderate 3.0% median base salary increase in 2016. With human capital concerns the number one issue top of mind for CEOs, the challenge in an era of cost constraints is to engage and retain talent without heavily relying on base salary as a motivating factor.

Are flat wage increases the “new normal” as employers adopt a more conservative attitude toward pay? Projected and actual increases have remained nearly constant since the end of the recession and reflect employers’ conservative attitude toward increasing base salary, according to new survey forecast results released from the Hay Group.

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