News

Total Compensation: The Cure for a 3-Percent Merit Budget

The June 17, 2013 issue of the Orange County Business Journal features the latest YES! article, which offers an employee-friendly alternative to a small (or non-existent) merit budget.

When it comes time for merit increases this year, the cheers from your employees may not be deafening.

Based on a recent WorldatWork survey, most employers are working with a 3-percent merit budget for U.S. employees in 2013. Once that 3 percent is added to current salaries (especially at hourly to mid-level manager pay levels), and taxes and other deductions are made, the net increase is very small—in some cases just a few dollars.

Cue the uncomfortable silence.

Here’s where you have a choice. You can go on the defensive, trying to explain why—once again—salary increases will be modest. Or you can go on the offensive and help your employees see the real value, the Total Compensation, they realize from working for you.

Read the full article

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