Average Increases Should Be Consistent With Past Years
September 24, 2020
The 2020 General Industry Salary Budget Survey, conducted by Willis Towers Watson Data Services, says there might be good news in bank employee paychecks in 2021. Raises are predicted across the board.
The survey found raises are projected to rebound from this year’s smaller-than-projected increases, even in industries that are struggling during the pandemic.
Companies granted employees increases between 2.5% and 2.7% this year, below the 3% companies had budgeted before the pandemic hit. Salary increases have hovered around 3% for the past decade. Only 7% of companies are not planning pay increases next year, down significantly from 14% this year, an indication that many organizations are projecting a turn toward normalcy in 2021.
In the financial sector, according to a Credit Union Times article, executives are projected to receive salary increases of 2.8%; managers (non-executives), 3.1%; exempt non-management and nonexempt salaried employees, 2.9%; and nonexempt hourly employees, 3%, according to the survey.
Bonuses, which are generally tied to company and employee performance goals, are projected to average 11% of a salary for exempt employees, while bonuses for nonexempt salaried and hourly employees will average around 6.8% and 5.6%, respectively.
“Most companies will continue to be in a cash preservation and cost optimization mode regarding their budgets. And although many companies are looking toward stabilizing their business next year, the full extent of the economic impact of the pandemic is yet to play out,” Catherine Hartmann, North America Rewards practice leader at Willis Towers Watson, explained.
“Companies will remain cautious and continue to adopt strategies that attempt to balance employee engagement with protecting their core business. This could call for further segmented allocation of base salary increases and use of discretion to preserve incentive payouts for companies that don’t reach performance targets.”
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