Pay surveys say workers will benefit from corporate profits

Posted 19m ago
By The Associated Press

Corporate profits are growing, and that's good news for workers, who are likely to get a pay raise next year as a result, according to two surveys.

The projections of pay raises come from separate surveys by two business consultants — Mercer, and Towers Watson. The surveys found companies expect to raise worker pay 2.5% to 3%. And salary freezes won't be as widespread.

The Mercer survey projects the average pay hike next year at 2.9%. That's up from an average hike of 2.7% this year.

The Towers Watson survey echoes the trend, although its projected pay increase for next year is 2.7%, up from the 2.3% this year.

Both surveys were based on responses from more than 1,000 companies.

Driving the pay raises are improved profitability and concern that the best workers may start looking for new opportunities if raises aren't forthcoming.

Still, both surveys indicate that 2% to 5% of companies plan across-the-board salary freezes next year. About 12% froze salaries this year, down from a third of companies in 2009.

http://www.usatoday.com/money/workplace ... veys_N.htm