|
September 2010
Results from the 2010-2011 Culpepper Salary Budget &
Planning Survey reveal that salary budgets
for 2011 are
projected to continue rising after hitting historic lows in
2009. Despite a weak job market,
most companies report improved
confidence with their cash compensation budgets. Projected
budgets for 2011, including salary increases, promotional
increases, and variable incentives are all higher than 2010.
Furthermore,
the
number of companies reporting salary freezes has significantly
declined, and salary reductions have nearly disappeared.
This year’s report includes data from 933 participating
organizations for 90 countries and
21 international geographic regions. Topics include salary
budgeting & planning practices, base salary increases, salary
structure increases, promotional increases, and budgets for
variable cash incentives.
Key Survey Findings and Trends
-
Most Companies
Aim to Match or Lead Market Pay Rates: Nearly
70 percent of companies have a base salary philosophy with
an objective to either match or lead the market and pay
salaries at or above current market levels.
-
Annual Salary
Reviews Most Common:
Most organizations review base salaries annually on a common
focal date.
-
Salary Increases
Rise: Average
global base salary increases across all jobs and locations
are projected to jump from 2.59% in 2010 to 3.14% in 2011.
-
Salary Freezes
Continue to Thaw:
The number of companies freezing salaries is projected to
decline sharply from 14 percent in 2010 to 4 percent in
2011.
-
Very Few
Companies Cutting Salaries:
Only 0.2% (two tenths of one percent) of companies plan to
cut salaries in 2011.
-
U.S. Salary
Increases: Base
salary increases in the United States are projected to rise
from 2.38% in 2010 to 2.91% in 2011.
-
Canada Salary
Increases: Base
salary increases in Canada are projected to rise from
2.26%
in 2010 to 2.95% in 2011.
-
Global Regions
with the Highest Salary Increases:
Base salary increases in South Asia, South America, Africa,
and the former Soviet Republics (i.e., Commonwealth of
Independent States) are higher and more volatile than
other regions of the world.
-
Global Regions
with the Lowest Salary Increases:
Base salary increases in Northern America (i.e., United
States and Canada), the Eurozone (€), and member states of European Free Trade Association (EFTA) are lower and
less volatile than other regions of the world.
-
Technology, Life
Science, and Energy Sectors Lead the Way:
Base salary increases in technology, life science, and
energy sectors are projected to outpace other sectors in
2011.
-
Salary Range
Structure Increases:
Average global salary range structure increases across all
jobs and locations are projected to rise from 1.41% in 2010
to 2.10% in 2011.
Recent Trends
Salary increase budgets have changed dramatically over
the past few years. In early September 2008, before the
global economic crisis unfolded, average global base salary
increases across all jobs and locations exceeded four percent
(Figure 1), with only two percent of companies freezing salaries
(Figure 2). From late 2008 through mid-2009, the number of
companies freezing salaries for all employees increased to 37
percent, which drove average base salary increases to
historically low levels.
Salary budgets for 2010 and 2011 have improved significantly
compared to 2009. However, average projected base salary
increases for 2011 are still much lower than 2008.
Note:
The survey date for each data point is provided
in parentheses.
Averages include salary freezes (zeros).
Note:
The survey date for each data point is provided
in parentheses.
Global Overview of Base Salary
Increases
Table 1 provides
aggregated average base salary increases for 2010 and 2011 for
major geographic regions throughout the world.
|
Table 1: Base Salary Increases by Global Region |
|
Geographic Region |
2010
Average Actual
Base Salary
Increases |
2011
Average Projected
Base Salary
Increases |
Includes
Salary Freezes
(with
zeros) |
Excludes
Salary Freezes
(without
zeros) |
Includes
Salary Freezes
(with
zeros) |
Excludes
Salary Freezes
(without
zeros) |
|
Global / Worldwide
(Aggregate)
|
2.59%
|
3.07%
|
3.14%
|
3.29%
|
|
Northern America
|
2.36%
|
2.86%
|
2.93%
|
3.07%
|
|
United States |
2.38%
|
2.88%
|
2.91%
|
3.07%
|
|
Canada |
2.26%
|
2.76%
|
2.95%
|
3.06%
|
|
Latin America
|
5.08%
|
5.46%
|
5.51%
|
5.60%
|
|
Mexico &
Central America
[1] |
3.76%
|
4.19%
|
4.23%
|
4.28%
|
|
Caribbean & West Indies [2] |
3.53%
|
4.17%
|
3.68%
|
3.78%
|
|
South America
[3] |
6.35%
|
6.77%
|
6.86%
|
7.01%
|
|
Europe
|
2.67%
|
3.02%
|
3.23%
|
3.29%
|
|
European Union
[4] |
2.51%
|
2.84%
|
3.07%
|
3.12%
|
|
European Union (Eurozone €)
[5] |
2.35%
|
2.69%
|
2.98%
|
3.00%
|
|
European Union (Non-Eurozone)
[6] |
2.71%
|
3.13%
|
3.28%
|
3.31%
|
|
Europe (Non-European Union)
[7] |
4.12%
|
4.73%
|
4.84%
|
4.89%
|
|
European Free Trade
Association (EFTA)
[8] |
2.21%
|
2.63%
|
3.03%
|
3.07%
|
|
Commonwealth of Independent States
[9] |
6.50%
|
7.40%
|
7.16%
|
7.28%
|
|
Middle East / Africa
(MEA)
|
4.51%
|
5.12%
|
5.54%
|
5.61%
|
|
Middle East
[10] |
3.53%
|
4.20%
|
4.50%
|
4.64%
|
|
Africa [11] |
5.92%
|
6.35%
|
6.38%
|
6.60%
|
|
Asia-Pacific
|
4.54%
|
4.96%
|
5.30%
|
5.35%
|
|
Asia [12] |
4.77%
|
5.18%
|
5.55%
|
5.61%
|
|
South Asia
[13] |
8.14%
|
8.67%
|
9.31%
|
9.40%
|
|
East Asia
[14] |
4.99%
|
5.39%
|
4.55%
|
4.64%
|
|
Southeast Asia
[15] |
3.98%
|
4.51%
|
4.94%
|
4.98%
|
|
Pacific [16] |
2.80%
|
3.30%
|
3.60%
|
3.63%
|
|
See bottom of page for footnotes and a list of countries
included in each geographic region. Data for individual
countries and breakouts by job level and function for
the United States and Canada are available in the
comprehensive version of this report. |
Global Base Salary Increases by Type of Company
Table 2 provides aggregated average global base salary
increases for 2010 and 2011 with breakouts by number of
employees, industry sector, and ownership. Base salary
increases in technology, life science, and energy sectors
are outpacing other sectors. It is also worth noting that,
on average, base salary increases for small companies are
significantly higher than large companies.
|
Table 2: Base Salary Increases by Type of Company |
|
|
2010
Average Actual
Base Salary
Increases |
2011
Average Projected
Base Salary
Increases |
Includes
Salary Freezes
(with
zeros) |
Excludes
Salary Freezes
(without
zeros) |
Includes
Salary Freezes
(with
zeros) |
Excludes
Salary Freezes
(without
zeros) |
|
All Companies
(Aggregate)
|
2.59%
|
3.07%
|
3.14%
|
3.29%
|
|
Number of Employees
|
|
|
|
|
|
1 to 100 |
2.50%
|
3.48%
|
3.31%
|
3.62%
|
|
101 to 500 |
2.76%
|
3.21%
|
3.29%
|
3.35%
|
|
501 to 2,500 |
2.58%
|
2.97%
|
3.17%
|
3.27%
|
|
2,501 to 10,000 |
2.55%
|
2.93%
|
3.04%
|
3.16%
|
|
Over 10,000 |
2.52%
|
2.74%
|
2.88%
|
3.03%
|
|
Industry Sector
|
|
|
|
|
|
Technology |
2.73%
|
3.23%
|
3.30%
|
3.39%
|
|
Aerospace & Defense |
2.80%
|
3.03%
|
3.22%
|
3.22%
|
|
CleanTech/GreenTech |
3.10%
|
3.10%
|
3.04%
|
3.04%
|
|
eBusiness: Online Content &
Services |
3.07%
|
3.07%
|
3.37%
|
3.37%
|
|
Hardware/Electronics/Semiconductor |
2.80%
|
3.29%
|
3.51%
|
3.56%
|
|
IT Services & Consulting |
3.05%
|
3.35%
|
3.60%
|
3.60%
|
|
Network/Data
Center/Internet/Telecom Svcs |
2.74%
|
3.21%
|
2.93%
|
3.16%
|
|
Software |
2.22%
|
3.17%
|
3.11%
|
3.29%
|
|
Life Sciences |
2.66%
|
3.01%
|
3.37%
|
3.43%
|
|
Biotechnology |
2.72%
|
3.12%
|
3.71%
|
3.84%
|
|
Contract Research &
Clinical Lab Services |
2.07%
|
2.83%
|
2.98%
|
2.98%
|
|
Medical Devices &
Scientific Equipment |
2.75%
|
2.90%
|
3.27%
|
3.27%
|
|
Pharmaceutical |
2.97%
|
3.25%
|
3.45%
|
3.45%
|
|
Healthcare |
2.38%
|
2.53%
|
2.56%
|
2.68%
|
|
Health Insurance & Managed Care |
2.62%
|
2.62%
|
3.04%
|
3.04%
|
|
Hospitals/Medical
Centers/Healthcare Svcs |
2.36%
|
2.56%
|
2.55%
|
2.65%
|
|
Energy |
3.43%
|
3.65%
|
3.51%
|
3.51%
|
|
Alternative & Renewable |
3.96%
|
4.45%
|
3.50%
|
3.50%
|
|
Energy: Other |
3.23%
|
3.37%
|
3.52%
|
3.52%
|
|
CleanTech & Alternative Energy |
3.55%
|
3.78%
|
3.25%
|
3.25%
|
|
Engineering |
2.79%
|
3.31%
|
2.73%
|
2.91%
|
|
Research Institutes & Organizations |
2.22%
|
2.67%
|
2.77%
|
2.94%
|
|
Other Sectors |
2.27%
|
2.88%
|
2.96%
|
3.22%
|
|
Ownership
|
|
|
|
|
|
Public |
2.64%
|
2.98%
|
3.22%
|
3.30%
|
|
Private |
2.69%
|
3.29%
|
3.30%
|
3.43%
|
|
Non-Profit |
2.28%
|
2.70%
|
2.62%
|
2.80%
|
|
The
comprehensive version of this report includes
breakouts by number of employees, industry sector, and
ownership for the United States and Canada. |
Salary Increase Budgets Vary
In challenging economic times, it is critical to
attract top talent and retain high performing employees who will
drive your organization’s success in difficult market
conditions. You cannot afford to guess about compensation rates
for key employees or make "across the board" salary increases or
freezes. It is important to carefully consider differences by
geographic location, job, company size, and industry sector.
Additional
Figures & Data Tables
In addition to the data tables and figures above, we provide a more
comprehensive
report
with additional figures and data tables for 2010
and 2011 salary budgets, including:
(with
breakouts by Number of Employees)
Salary Freezes
(with breakouts by Number of Employees, Industry Sector, and
Ownership)
Global Base Salary Increases
Global Base Salary Range Structure Increases
United States Base Salary
Increases
-
By
Number of Employees
-
By Industry
Sector:
-
Technology:
Aerospace & Defense,
CleanTech/GreenTech, eBusiness: Online Content &
Services, Hardware/Electronics/Semiconductor, IT
Services & Consulting, Network/Data
Center/Internet/Telecom Services, Software
-
Life Sciences:
Biotechnology, Contract Research & Clinical Lab
Services, Medical Devices & Scientific Equipment,
Pharmaceutical
-
Healthcare: Health Insurance & Managed Care,
Hospitals/Medical Centers/Healthcare Services
-
Energy: CleanTech & Alternative Energy, Other Energy
-
Engineering
-
Research Institutes & Organizations
-
Other Sectors
-
Ownership:
Public, Private, Non-Profit
-
Job Level:
Executives, Director & Manager,
Professional, Hourly & Non-Exempts
-
Job
Function: Sales and Technical/Engineering/Scientific
-
U.S. Aggregate with Percentile Range
(10th, 25th, 33rd, 40th, 50th, 67th, 75th, 90th)
United States Salary Range Structure Increases
Canada Base Salary Increases
-
By
Number of Employees
-
By Industry
Sector:
-
Technology:
Aerospace & Defense,
eBusiness: Online Content & Services,
Hardware/Electronics/Semiconductor, IT Services &
Consulting, Network/Data Center/Internet/Telecom
Services, Software
-
Life Sciences:
Biotechnology, Contract Research & Clinical Lab
Services, Medical Devices & Scientific Equipment,
Pharmaceutical
-
Other Sectors
-
Ownership:
Public, Private, Non-Profit
-
Job Level:
Executives, Director & Manager, Professional, Hourly
-
Job
Function: Sales and Technical/Engineering/Scientific
Canada Aggregate with Percentile Range
(10th, 25th, 33rd, 40th, 50th, 67th, 75th, 90th)
Canada Salary Range Structure Increases
By Job Function:
Sales, Technical/Engineering/Scientific, Clinical/Healthcare
Services
Canada Aggregate
with Percentile Range (10th, 25th, 33rd, 40th, 50th, 67th,
75th, 90th)
Latin America Base Salary
Increases
Regional and country breakouts are provided
for:
-
Mexico & Central America: Costa Rica ,
El Salvador, Guatemala, Honduras,
Mexico, Nicaragua, Panama
-
Caribbean & West Indies:
Dominican Republic, Jamaica, Puerto Rico, Trinidad &
Tobago
-
South America: Argentina, Brazil, Chile, Colombia,
Ecuador, Paraguay, Peru, Uruguay, Venezuela
Europe
Base Salary Increases
Regional and country breakouts are provided
for:
-
European Union Eurozone (€):
Austria, Belgium, Finland, France,
Germany, Greece, Ireland, Italy, Luxembourg, Netherlands, Portugal, Slovakia,
Slovenia, Spain
-
European Union: Non-Eurozone:
Bulgaria, Czech Republic, Denmark, Estonia, Hungary, Latvia,
Lithuania, Poland, Romania,
Sweden, United Kingdom
-
European Free Trade Association
(EFTA): Norway, Switzerland
-
Commonwealth of Independent
States: Azerbaijan, Kazakhstan, Russia, Ukraine
-
Other Non-European Union:
Bosnia
& Herzegovina,
Croatia, Serbia, Turkey
Middle East & Africa
Base Salary Increases
Regional and country breakouts are provided
for:
-
Middle East:
Bahrain, Israel, Jordan, Kuwait, Lebanon, Saudi Arabia, United Arab Emirates
-
Africa:
Algeria, Egypt, Ghana, Kenya, Morocco,
Nigeria, South Africa, Tanzania, Tunisia
Asia-Pacific Base Salary
Increases
Regional and country breakouts are provided
for:
-
South Asia:
Bangladesh, Indian, Pakistan, Sri Lanka
-
East Asia:
China, Hong Kong,
Japan, South Korea, Taiwan
-
Southeastern Asia: Indonesia, Malaysia, Philippines, Singapore, Thailand, Vietnam
-
Pacific:
Australia, New Zealand, Other Oceania
Islands & Territories
Promotional Salary Increases
-
Promotional
Increases as % of Total Base Salaries of all Employees
-
Promotional
Increases as % of Base Salary per Promoted Employee
Variable, Short-Term Cash Incentive Budgets
By Job Function:
Sales, Technical/Engineering/Scientific, Clinical/Healthcare
Services
Availability of
Comprehensive Report
PDF report with salary budget data for 2010 and 2011.
Data Source: 2010-2011 Culpepper Salary Budget
& Planning Survey of
933 organizations.
Survey Dates: June 22, 2010 through August 25, 2010
Participants by Sector:
Technology 44%, Life Sciences 14%, Healthcare 7%,
Energy 4%, Engineering 2%,
Other 29%
Participants by Number of Employees:
Up to 100: 17%, 101 to
500: 20%, 501 to 2,500: 27%, 2,501 to 10,000:
23%, Over 10,000: 13%
Participants by Ownership:
Public 44%, Private 42%, Non-Profit
13%, Other 1%
The salary increase data in this report
includes COLA (cost of living adjustment), inflation, merit, and
other non-promotional increases.
|
Footnotes
for Geographic Regions
in Table 1
[1] Mexico & Central America
includes data collected for the following
countries and territories: Costa Rica, El
Salvador, Guatemala, Honduras, Mexico,
Nicaragua, and Panama.
[2] Caribbean & West Indies
includes data collected for the following
countries and territories: Bahamas, Barbados,
Bermuda, Dominican Republic, Jamaica, Puerto
Rico, Trinidad & Tobago, and other Caribbean
Islands & Territories.
[3] South America includes data
collected for the following countries:
Argentina, Bolivia, Brazil, Chile, Colombia,
Ecuador, Paraguay, Peru, Uruguay, and Venezuela.
[4] European Union includes data
collected for 27 member states in the European
Union. The European Union breakout is a
combination of Eurozone (€) and Non-Eurozone.
[5] Eurozone (also known as euro
area and euroland) includes data collected for
16 member states in the European Union that have
adopted the euro (€) as their official currency:
Austria, Belgium, Cyprus, Finland, France,
Germany, Greece, Ireland, Italy, Luxembourg,
Malta, Netherlands, Portugal, Slovakia,
Slovenia, and Spain.
[6] Non-Eurozone includes data
collected for 11 member states in the European
Union that have not adopted the euro (€) as
their official currency: Bulgaria, Czech
Republic, Denmark, Estonia, Hungary, Latvia,
Lithuania, Poland, Romania, Sweden, and the
United Kingdom.
[7] Non-European Union includes
data collected for the following countries in
Europe that are not in the European Union:
Armenia, Azerbaijan, Belarus, Bosnia &
Herzegovina, Croatia, Georgia, Iceland,
Kazakhstan, Kyrgyzstan, Liechtenstein,
Macedonia, Moldova, Norway, Russia, Serbia,
Switzerland, Tajikistan, Turkey, Turkmenistan,
Ukraine, and Uzbekistan.
[8] European Free Trade
Association (EFTA) is a subset of Non-European
Union and includes data collected for the
following four member states: Iceland,
Liechtenstein, Norway, and Switzerland.
[9] Commonwealth of Independent
States is a subset of Non-European Union and
includes data collected for the following former
Soviet Republics: Armenia, Azerbaijan, Belarus,
Iceland, Kazakhstan, Kyrgyzstan, Liechtenstein,
Moldova, Norway, Russia, Switzerland,
Tajikistan, Turkmenistan, Ukraine, and
Uzbekistan.
[10] Middle East includes data
collected for the following countries: Bahrain,
Iraq, Israel, Jordan, Kuwait, Lebanon, Oman,
Qatar, Saudi Arabia, and United Arab Emirates.
[11] Africa includes data
collected for the following countries: Algeria,
Cameroon, Egypt, Ghana, Kenya, Mauritius,
Morocco, Mozambique, Nigeria, Senegal, South
Africa, Tanzania, Tunisia, and Zimbabwe.
[12] Asia includes data collected
for the following countries: Bangladesh, China,
Hong Kong, India, Indonesia, Japan, Macau,
Malaysia, Myanmar, Pakistan, Philippines,
Singapore, South Korea, Sri Lanka, Taiwan,
Thailand, and Vietnam.
[13] South Asia is a subset of
Asia and includes data collected for the
following countries: Bangladesh, India,
Pakistan, and Sri Lanka.
[14] East Asia is a subset of
Asia and includes data collected for the
following countries: China, Hong Kong, Japan,
Macau, South Korea, and Taiwan.
[15] Southeast Asia is a subset
of Asia and includes data collected for the
following countries: Indonesia, Malaysia,
Myanmar, Philippines, Singapore, Thailand, and
Vietnam.
[16] Pacific includes data
collected data for the following countries and
territories: Australia, New Zealand, and other
Oceania Islands & Territories. |
Copying:
If you copy portions of this article
into your own publication, please cite Culpepper as the source
by including the following statement:
"Source:
2010-2011 Culpepper Salary Increase
Budget & Planning Survey,
September 2010,
www.culpepper.com"
|
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