As the 2015 budgeting and salary increase processes are about to begin, I wanted to share a few compensation recommendations I have been offering to management groups across the southeast: “Three ways to keep pay competitive in a tight budgets era”:
· We see some thawing in the marketplace, with community banks returning slowly to growth strategies, but as you know it is still a time to manage expenses. Budgets have risen slowly but steadily since 2009 … a tough climb for most.
· The recession has also been tough on individuals with 65% of Americans “not fully satisfied” with their current salaries. As things begin to improve business owners do not want to be a risk of losing key staff to defections over pay.
· And 2015’s average Salary budget increase projections are still relatively low ….in the 2.5 to 3 % range … still below pre-recession levels
· That kind of budget makes it hard to differentiate between low and high performers using standard models … so we are suggesting using traditional salary increase models as guideline to insure you do not lose sight of market values, but then using deliberate override tactics like:
I hope these compensation tips resonate with you and aid your 2015 planning process. If these points raise additional questions and/or if you would like some assistance auditing your compensation structures, please do not hesitate to let me know. All the Best for a successful 2015!