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Hi Everyone...just wanted some insight on what you will be doing next year in regards to Merit Increases...I know each industry is different, we're in the Travel Industry and we're still projecting a slight increase in revenues (not as high as previous years)
In lieu of that we may be only giving out increases of 2-4% instead of 3-6% but are contemplating not giving any at all until we see the increase in revenues as they are flat as we speak.
What are you doing? Thanks in advance!
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| I think the employment market is a "employers" market so to speak - there's more people looking for work than there are available jobs. That said, you shouldn't fear that your employees might look elsewhere for a job if you're not providing the usual annual increase, especially if you give your word that you'll give the merit raises, should the economy improve and your business continues to increase profit. Do you give year end bonuses as well?
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Great question. I have been asked this same question of our CEO and am not able to reply. I have tried to do some research on the web to determine what methodology we should follow to ensure we get our increases in line with the market, but more so, get a methodology in place so we can substantiate our increases. For clarity, I am refering to increases outside of the typcial performance linked remuneration that we will offer.
The bottomline questions are:
- on what basis do we calculate raises?
- do we have to look to some market websites on salary increases? which ones are reliable? how accurate is their data? etc. etc.
- where do we get reliable guideance on what the average market increase should be?
- if you can't afford to do market analysis - where do you turn?
- do we have to base increases on future planned revenue increases
- is it just "thumbsuck"!?
What methodology is used by most companies to come up with the 2-3% or 3 to 6%??
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