Unemployment’s remained more or less stuck around the 8 percent mark for months now—with incremental dips along the way. But for those with jobs, salaries are stalled out, as well.
But don’t think things are any different for those in the insurance business. Pay increase budgets have been stuck neutral for a while now. And, not that we needed it, we have confirmation again.
The Compdata Surveys 2012 Compensation Data Insurance survey reveals pay increase budgets are at 2.8 percent, essentially reflecting no change since 2010. But pay increase budgets are projected to slightly increase in 2013, hitting 3 percent for the first time since 2009.
In the insurance business, 88 percent of organizations report using pay increase budgets for merit increases while more than 36 percent offer promotional increases, while nearly 26 percent use pay increase budgets for market adjustments. Only 4.1 percent of organizations actually use pay increase budgets to implement cost of living adjustments, according to the report.
Regionally, pay increase budgets vary slightly as insurance organizations in the East and South each report pay increase budgets of 3 percent while those out West trail slightly at 2.8 percent. Insurance employers in the Midwest report the smallest pay increase budget at 2.6 percent.
Projected budgets for 2013 are fairly consistent across all regions as well, with companies in the East and West reporting a projected budget of 3.1 percent. Insurance organizations in the South are projecting 3 percent pay increase budgets in 2013, compared to companies in the Midwest, 2.8 percent.