New data shows salary increases will average 3.8% in 2008

Conference Board survey shows raises may slip in 2009

By Susan Avery -- Purchasing, 8/27/2008 12:05:00 PM

New data from The Conference Board shows companies are allotting 3.8% more in their budgets for salary increases in 2008 across non-exempt, exempt, and executive employee categories. Salary increase budgets for non-exempt hourly employees come in lower at 3.7%.

For 2009, The Conference Board expects the median budget for salary increases to be at 3.75% for both non-exempt salaried and hourly employees. The median salary increase budget projections for exempt and executive employees are higher at 3.8%% for exempt and 3.9% for executives.

The Conference Board gathered information for its report from more than 350 companies in April and May of 2008. Among the 250 companies that responded both last year and this year, some 35% report lower actual 2008 salary increase budgets than they projected last year for executives and exempt employees.

“Companies are responding to a sluggish economy by remaining disciplined on labor cost increases,” says Charles Peck, compensation specialist with The Conference Board in New York. “They are aided in this resolve by moderate inflation.” The Conference Board currently projects a 2.7% rise in inflation for 2008 and 3.4% for 2009. This means the typical employer is budgeting for salary increases just slightly ahead of inflation in 2009.

Results of Purchasing’s 27^th annual salary survey show purchasing professionals on average earned $84,611 in 2007, an increase of 1.6% over the previous year.

Purchasing will publish its 28^th annual salary survey in its December 2008 issue.

See also: How to negotiate a higher salary

See also: 2006 salary survey: Purchasing paychecks get fatter