Corporations have been challenged regarding 2020 salary increases. According to WorldatWork, a Total Rewards firm, this year has been the most challenging since the Great Recession for many companies. Companies are projecting lower budgets for salary increases as they attempt to preserve cash and make the best use of scarce resources.
Despite planned lower increases overall, most companies still plan to increase pay to recognize standout performance. WorldatWork reported:
- 84% of organizations surveyed expected to “pay some form of salary increase in 2020”
- 70% of companies providing increases paid out 3%-4%, on the high end
- 65% of employers surveyed hoped to make adjustments for women and minority employees to align pay with their counterparts
Pay increases for 2021 are expected to remain flat and mirror 2020. With much uncertainty, we will see what 2021 brings and its impact on pay.