The median base salary increases are projected to hit 3 percent this year, according to recent research by the Hay Group, a global consulting firm.

This 3 percent median increase is consistent for executives, middle management, supervisory and clerical positions, and this figure is rather steady across most industries. Once calculating annualized consumer price index growth at 3.0 percent, projected employee wage growth is in line with inflation.

Although most industries are in line with the 3 percent median base salary increase, including the industrial, retail and financial services sectors, the economy affects the various industries differently. Certain health care jobs, such as nursing and clinical employees, are experiencing 2.5 percent median increases, but employees in the oil and gas sectors are seeing 4 percent median increases planned for 2012.

“Even though the economy continues to show signs of a slow recovery, we do not expect most employees to receive increases at the levels seen in the years prior to 2008 for a while when median increases were tracking between 3.5 percent and 4 percent,” says Tom McMullen, Hay Group’s North American reward practice leader. “Slower growth in base salary increases is causing most organizations to be innovative in their approach to reward management. We see most organizations having a continued focus on managing their fixed costs in base salary and benefits programs while placing renewed attention on retention and engagement strategies for the talent needed to run their business.

"Differentiating all rewards and ensuring that top performers receive rewards that are greater than average performers is a continued focus area for organizations. Organizations are quite happy to pay for performance but only if they get it.”

Instant Insights /

U.S. base salary increases expected to remain steady

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