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Increase to Salaries Expected in 2007

Good news for the working people. The 3.7 percent rise in salaries that took place in 2006 will repeat itself in 2007 as well, concluded a survey that covers over 1,000 employers. According to the survey, the expected increase will not damage other options for salary awards that employees have, such as high performance bonuses. The survey mapped the expect increase and concluded the following.

Executive employees will enjoy a 3.8 percent rise to their salary, on average. Workers that are salaried for overtime will enjoy a 3.6 percent rise, and union workers will benefit from a 3.3 percent rise. Each company is expected to add 11 percent to the total payroll sum ? very close to the 11.2 percent rise this year.

"In today`s competitive global economy, companies are unwilling to increase costs to their bottom line, therefore, they are relying on variable pay to help motivate employees and help them cope with growing economic pressures," said Ken Abosch of Hewitt. "The bottom line is that variable pay is a smarter way to manage a business in a good or bad economy."