Compensation Resources, Inc. (CRI) is pleased to present the results of our 2008 Annual Salary Budget Planning Survey (formerly Year-End Compensation Survey).  The purpose of this study was to obtain compensation data used for trending and planning purposes at companies of all sizes, locations, and industries.  Data was compiled from survey questions that were developed by CRI and distributed to companies in over 20 industries, in addition to Non-Profit organizations.  The survey sampled compensation data from a variety of organizations, collected in August 2008, and had a total of 379 participants.

Along with an overall breakout, we have separated the data by company type, revenue, organization size and industry.  This survey reports detailed information concerning merit increases by employee group, along with important employment data, such as layoffs, hiring freezes, staffing increases, salary freezes, and cutbacks in pay.

Other major points mentioned in this survey are:
·         Short-term incentive plans
·         Long-term incentive plans
·         Compensation package mix

Similar to overall compensation, salary budget increases should be allocated in accordance with your company’s strategic plan.  In this competitive labor market, however, it is important to look at what other companies are doing as well.  Given the current economic climate, many organizations remain even more cautious when it comes to increasing salary budgets.

Companies should consider the following for the 2009 compensation year:

v      Determine salary budget increase:  Although market trends tend to affect salary budget decisions, your company’s ability to pay should be the primary driver.  Determine what level of salary increase you can afford, and factor current trends into your decision.

v      Determine salary structure movement:  Determine the age of your salary structure(s) and what adjustments may be needed to maintain competitiveness.  Once the structure is adjusted, determine what action will be taken for employees who are below the range minimum and above the range maximum.

v      Evaluate incentive plans:  Make sure your incentive plans are achieving desired results.  If your company does not have an incentive plan in place, consider this tool as a means of leveraging your salary budget to promote strategic objectives.

When conducting the salary budget planning process, be sure not to miss opportunities to align money spent with strategic goals, and to reinforce desired behaviors.