Thank you to all who participated in our first survey in a series of three, focusing on 2020 salary increase practices. The second survey in our series, focusing on short-term incentive practices, will be launched soon so be on the lookout for the details to participate!
2020 Salary Increase Practices Survey
Conducted July 2020
100% of the responses were received from privately-held organizations from a multitude of
industries to include: Chemicals, Healthcare, Professional Services, Real Estate, Software and Technology.
Overall, a majority of the organizations modified the effective date of 2020 salary increases but are not modifying the overall salary increase budgeted amounts. Less than half of the
organizations made changes to other pay practices and programs. These results are indicators that organizations are positive about the second-half of the year and continue to put importance on rewarding their employees with annual salary reviews and increases.
The following provides the detailed results of the survey:
57% of organizations modified the effective date of 2020 salary increases, with 100% of those moving to later in the year. The responses were mixed at 50% providing a pro-rated increase and 50% providing the full increase amount. 43% of organizations have not modified the effective date of 2020 salary increases.
86% of organizations have not modified their salary increase budget. To clarify for example, if the organization’s original salary increase budget was 3%, although they may have modified the date or are providing a pro-rated portion, the 3% budgeted amount applies.
Only 14% of organizations modified their salary increase budget, and of those, 100% decreased the budget from the original anticipated 2020 budget.
Approximately 43% have made other changes to their pay programs to include:
Temporary pay reductions
Promotional increases on exception-basis only
A majority of organizations (57%) are making no other modifications at this time.