The majority of those asked say they expect a bigger paycheck this year. Rusty Rueff is a career and workplace expert for Glassdoor, a job listings site, which released the poll. Raise optimists outnumbered pessimists for the first time since 2008, when the website began its quarterly Employment Confidence Survey.
He spoke with KFWB’s Maggie McKay and Michael Shappee:
Is this just wishful thinking on the part of recession weary workers? Maybe not.
Raises are indeed slowly making a comeback, said Ken Abosch, group compensation leader for Aon Hewitt, a human resources consulting firm that surveyed nearly 1,500 U.S. companies last year about expectations for pay increases in 2012 and found employers planned to pay an average raise of 2.9 percent, up slightly from 2.8 percent in 2011, although way up from the record low 1.4 percent for 2009.
“Organizations are still very concerned with the health of economy, and they’re feeling pressures of global economy,” Abosch said. Many firms, he added, “fought hard in the last few years to gain control back over their fixed costs.”
Unfortunately for employees, your base salary is a big chunk of those costs, so employers want to do everything they can to keep a lid on it. On the bright side, he added, more employers are paying out bonuses.
“Our statistics show that 90 percent of U.S. companies are providing bonuses as far down as the person sweeping the floor in the factory,” he said. That is up from 78 percent in 2005 and about 50 percent just 15 years ago.
“Positive economic and company indicators are driving increased optimism around pay raises and company outlook, but that optimism hasn’t yet spilled over into individual job security or view of the job market,” said Rusty Rueff, career and workplace expert for Glassdoor.
“Employers should pay attention to employee expectations around pay and be more transparent to ensure employee sentiment is aligned with reality, which will help avoid disappointment that can impact morale.”