Median base salary growth will be 3 percent next year, according to research, consistent with the past two years as the national economy continues to grow slowly.
Inflation-adjusted pay movement for 2013 is projected to be a net gain of 0.8 percent, compared to 0.6 percent losses this year. Some industries are outperforming others in terms of expected base salary growth, as they may be recovering more quickly. Limited salary growth is having a number of effects, such as encouraging employers to focus on improving employee engagement since they cannot try to motivate workers with compensation.
Limited compensation may encourage employers to work on any HR issues or concerns and seek improvements in employee interaction to improve talent attraction and retention. Research determined that many organizations are using variable pay programs, career development opportunities and nonfinancial recognition programs, according to the Society for Human Resource Management.
One expert stated that the lack of attention to nonfinancial rewards and recognition can often motivate employees to leave and seek other employment, making this change a potentially positive one for many employers and workers. Adapting an organization's HR management system and compensation methods to take these concerns into account may be helpful.
Acknowledging and rewarding employees
Often simple verbal recognition of employees' work can go a long way toward convincing them they are valued. Whether an individual is comfortable being singled out in front of his or her peers or prefers for such praise to be delivered one-on-one varies. Supervisors and managers will need to spend some time becoming acquainted with those under their purview in order to deliver praise appropriately.
Beyond that, nonfinancial rewards might include privileges such as granting greater independence in how an employee completes his or her assignments or how those tasks are selected. This demonstrates confidence in the individual's judgment while also providing the opportunity to make more choices, which can heighten engagement in the work being done.
Career development opportunities may help a worker become more effective while also indicating that they are a valued resource the organization wishes to cultivate. That can help develop a positive relationship in addition to the more direct advantages.
