The average planned merit increase for next year is 1.85 percent, according to BLR's 2010 Pay Budget Survey. More than 40 percent of respondents reported that they had planned on giving no merit increase at all in 2010.
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Get Your Report Now!BLR's 2010 Pay Budget Survey reveals that economic conditions deteriorated much further than employers anticipated. For example, survey respondents reported an average actual merit increase of 1.47 percent for 2009, compared with the 2.8 percent planned pay raise employers had reported to BLR in a previous survey conducted in October 2008.
In October, BLR conducted a follow-up to its 2009 Pay Budget Survey, which was released before the economic turmoil that brought down several large institutions during the summer of 2008. The survey in October was conducted to measure how employers were responding to the economic conditions.
BLR's 2010 Pay Budget Survey shows that employers had to readjust their pay budgets even further after October. For example, the most recent survey found that more than half of employers said they gave employees no merit increases in 2009.
Nearly 1,600 organizations participated in the survey. BLR conducted the survey in June and July of 2009.
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