Raises next year are expected to average 3 percent

10/03/2013 2:18 PM

10/03/2013 4:45 PM

Base pay increases for 2014 are expected to average 3 percent for the second straight year, according to a leading compensation survey.

That’s about a full percentage point lower than typical annual raise levels before the recession.

Buck Consultants also reported Thursday on a compensation angle related to the federal Affordable Care Act. Eight percent of the organizations surveyed said they have capped work hours of part-time employees and 12 percent said they are considering it.

The health reform law will require employers in 2015 to offer health insurance options to employees who work 30 hours a week or more.

The Buck survey found that 8 percent of employers “are incenting employees to obtain benefits via another source” such as the online insurance marketplaces designed to provide individual and small-business insurance options for people who don’t have other affordable group or government-sponsored coverage.

Other takeaways from the survey, which was completed in August:

• Only 19 percent of the responding employers planned to add employees in 2014. That was the same percentage as this year.

• Both short-term and long-term incentive awards to employees — bonuses — are likely to be rarer and smaller next year than the amounts recorded in 2012.

• There may be larger pay increases for sought-after employees, especially those in particular information technology and medical professions.

Buck principal David Van DeVoort summarized the outlook: “Employers continue to be cautious with their salary budgets. What’s more, performance ratings got tougher and average promotional pay increases stagnated.”


Join the Discussion

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.

Terms of Service