Pay raises hover at 2.8 percent this year, 2.9 percent next year

Updated: 2013-07-17T02:59:41Z


The Kansas City Star

U.S. employers are “staying the course,” according to a new survey of pay increases planned for 2014.

A Mercer survey released Tuesday said employee raises averaged 2.8 percent this year and won’t change much next year. A 2.9 percent average is expected.

Raises averaged 2.7 percent in 2012 and 2011.

The survey also noted that salary increases for top-performing employees — identified as about 7 percent of the workforce — will rise higher as companies pay top talent more in an effort to keep them on staff.

“Employers recognize that their greatest challenge is to retain their top performers to avoid post-recessionary flight of these valuable assets,” said Jeanie Adkins, an executive with Mercer’s rewards practice. “This includes providing higher pay increases along with other non-cash rewards such as training opportunities and career development.”

Highest-performing employees earned average base pay increases of 4.6 percent in 2013, compared with 2.6 percent for average performers and 0.2 percent for the lowest performers.

The survey produced every indication that pay-for-performance is “alive and well” as a compensation practice, the company said.

Mercer’s pay survey, which has been conducted for more than 20 years, reaches 1,500 midsize and large employers nationally, accounting for about 13 million workers.

Survey results are given for five categories of employment: executive, management, professional (sales and non-sales), office/clerical/technician, and trades/production/service. Details are available at

To reach Diane Stafford, call 816-234-4359 or send email to

Deal Saver Subscribe today!


The Kansas City Star is pleased to provide this opportunity to share information, experiences and observations about what's in the news. Some of the comments may be reprinted elsewhere on the site or in the newspaper. We encourage lively, open debate on the issues of the day, and ask that you refrain from profanity, hate speech, personal comments and remarks that are off point. Thank you for taking the time to offer your thoughts.

The Kansas City Star uses Facebook's commenting system. You need to log in with a Facebook account in order to comment. If you have questions about commenting with your Facebook account, click here