This article was last updated on September 13
Unless you are a senior executive of a Fortune 500 company you probably won’t be seeing a double digit raise this year. According to the seventh annual Compensation Planning Survey by Buck Consultants, workers who were among the highest-rated at their firm got average raises of 4.3%, an increase of just 0.2% from a year earlier.
And according to a survey by Towers Watson, the highest performers got an average salary bump of 4.6% in 2013, compared with 2.6% for average employees. And employees shouldn’t expect their employers to make it rain anytime soon: According to Towers Watson, employers are planning on doling out average raises of just 2.9% for salaried, non-management employees — virtually unchanged from last year. “With the job market remaining relatively soft, most companies aren’t feeling pressure to raise salaries by much more than the rate of inflation,” said Laura Sejen, global practice leader for rewards at Towers Watson.
With inflation low and economic growth tepid, it is unlikely raises will be much more than last year. So even if you are star performer at work and your company is going well I would budget for a 2 to 5% raise at best. Though, looking on the bright side, any raise is a considerable improvement over the recessionary years from 2008 to 2010 when keeping ones job was a challenge let along getting a pay raise.