Same Ol’ Same Ol’: 2020 Forecasted Base Salary Increases Remain at 3 Percent, According to Korn Ferry Research
September 17 2019 - 8:00AM
Business Wire
Ninth Year in a Row that Salary Growth Has
Stayed Consistent
For the ninth year in a row, U.S. employees can expect to see a
3.0 percent median base salary increase in 2020, according to new
research released by Korn Ferry (NYSE:KFY). The average base pay
increases are for workers at all levels, from clerical through
senior executive.
The 2020 salary increase projection is consistent with median
actual 2019 base pay increases of 3.0 percent, reported by surveyed
companies. These projected and actual increases have remained
consistent since the end of the recession and reflect employers’
ongoing conservative attitudes toward base salary increases.
“Even though the U.S. economy remains strong and we are
experiencing very low unemployment levels, there are mixed views on
anticipated economic growth, which has an impact on wage growth,”
said Korn Ferry Senior Client Partner Tom McMullen. “One factor may
be that feelings of uncertainty about the future are keeping
employers cautious in terms of offering higher growth in fixed
costs and base wages.”
While the 3.0 percent anticipated median growth in base salaries
is consistent across employee groups from clerical support to
executives, there are variations in pay increase practices across
organizations. Companies in the top 10th percentile of surveyed
organizations estimate a 3.5 percent increase across employee
groups in 2020, while the organizations that pay in the bottom 10th
percentile predict a 2.5 percent increase.
“While the 3.0 percent median salary increase number has become
typical over the years, that doesn’t mean that top performers
aren’t being rewarded,” said McMullen. “Companies are relying more
on short and long-term incentive plans and pay-for-performance
programs to provide meaningful pay differentiation for top talent.
In addition, we typically see highly rated talent receiving double
the base pay increases of average-rated talent.”
About the research
Korn Ferry’s forecast results are based on the latest data
available from its U.S. pay database, collected from March through
June 2019. Actual pay data is gathered from the same group of
respondents and tabulated in July each year. This is Korn Ferry’s
40th year of conducting the survey. Typical respondents to the
survey include compensation professionals in the Human Resources
departments of small to large U.S. organizations across a wide
range of industries.
About Korn Ferry
Korn Ferry is a global organizational consulting firm. We work
with clients to design their organizational structures, roles and
responsibilities. We help them hire the right people and advise
them on how to reward, develop and motivate their workforce. And,
we help professionals navigate and advance their careers.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20190917005110/en/
MEDIA CONTACT Tracy Kurschner 612.309.3957
Tracy.Kurschner@Kornferry.com
Korn Ferry (NYSE:KFY)
Historical Stock Chart
From Mar 2024 to Apr 2024
Korn Ferry (NYSE:KFY)
Historical Stock Chart
From Apr 2023 to Apr 2024