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U.S. workers will get modest raises in 2012, report finds

August 22, 2011 |  1:03 pm

Dollar Salaried workers likely will get a 2.8% pay bump next year, according to a report Monday.

In a survey of 773 U.S. companies, human resources consultancy Towers Watson found that raises will stay moderate until the economy finds solid footing. The report found that companies expect to give a similar percentage raise to executives and nonexempt employees in 2012.

Merit will play a key role in how much managers decide to dole out -- whether to reward good behavior or to prevent valuable employees from jumping to competitors.

Workers with the highest performance ratings will earn median salary increases of 4.5% -- 80% more than their colleagues with average ratings, the study found.

Earlier this month, Towers Watson said that “potentially violent and difficult-to-predict market moves are likely for a number of years.” Despite the sense of unease, companies said they will still fully fund annual bonuses for staff, according to a separate report from the consultancy.

RELATED:

California unemployment rate rises to 12% in July

University of California announces raises for non-union workers

-- Tiffany Hsu

Photo: Scott Olson/Getty Images

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