A recent Willis Towers Watson (“WTW”) survey found that most U.S. companies are planning to give employees pay raises and annual bonuses next year despite the economic fallout from the pandemic. Raises are projected to rebound from this year’s smaller-than-projected increases, even in industries that are struggling during the pandemic.
The survey reveals that companies are projecting average salary increases of 2.8% for all employees in 2021, including exempt, non-management and management employees. Non-exempt salaried and hourly employees as well as executives are in line to receive slightly smaller increases (2.7%). Companies granted employee increases between 2.5% and 2.7% this year, below the 3.0% companies had budgeted before the pandemic hit. Salary increases have hovered around 3.0% for the past decade.
Among the major industries, healthcare and retail industries are projecting a slight bump at 2.6% and 2.8%, respectively. Employees in the insurance and nondurable goods industries are in line for above-average increases of 2.9% and 3.0%, respectively.
Moreover, the survey reports that companies continue to reward star performers. Employees receiving the highest possible rating were granted an average increase of 4.7% this year, 68.0% higher than the 2.8% increase granted to those receiving an average rating. Bonuses are projected to average 11.0% of salary for exempt employees, while bonuses for nonexempt salaried and hourly employees will average around 6.8% and 5.6%, respectively.
This Post is for informational purposes only and does not constitute an offer, invitation or recommendation to buy, sell, subscribe for or issue any securities. While the information provided herein is believed to be accurate and reliable, TAG Financial Institutions Group, LLC and Ashland Securities, LLC make no representations or warranties, expressed or implied, as to the accuracy or completeness of such information. All information contained herein is preliminary, limited and subject to completion, correction or amendment. It should not be construed as investment, legal, or tax advice and may not be reproduced or distributed to any person. Certain Principals of TAG Financial Institutions Group, LLC are registered representatives of Ashland Securities, LLC Member FINRA, SIPC. TAG Financial Institutions Group, LLC and Ashland Securities, LLC are separate and unaffiliated entities. Securities and Investment Banking Services are offered through Ashland Securities, LLC.
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