Salaries in 2007What' s your opinion on the prospect of salary increases in 2007? The economy seems strong. Will low unemployment push salaries up this year? If so, by how much?
The standard in every job I've been at has been between 3-4%. However, back in 2002, 2003 and 2004, I was lucky that I got a 1.5% raise. Gone are the days when people receive COLA at raise time. At my last position, it was all merit, but the highest a raise a person could earn was 3%, and you were in competition with the co-workers in your department, so most people didn't get 3%. Perhaps the corporate world is different, but I suspect that most people will be lucky if they get a 3% raise this year. Keeping in mind that the original question was rather sweeping, it' s my opinion that salary increases this year will edge up slightly. I think, broadly speaking, that increases will be in the 3% to 5% range. The minimum wage seems very likely to go up to $7.25 per hour, but that' s much of what other salaries will do, but as long as unemployment stays low and the economy continues to expand, I think there will more upward pressure on salaries for employers to stay competitive for the talent they need to stay competitive. Put in simple terms, demand for talent will exceed supply and that will tend to push salaries higher than if the reverse were true. | |
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