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September 2011
For the most current salary increase budget data, see the
2012 Salary Budget Update Survey.
Results from the 2011-2012 Culpepper Global Salary Budget Survey reveal that salary budgets
are projected to rise again in 2012. However, the pace of salary increases is projected
to slow in 2012, as companies adjust their budgets to a slowing and uncertain economic recovery.
As companies adapt to a new normal of volatile financial markets, smaller salary increase budgets,
and increased global competition for talent, it is critical that they allocate salary increases wisely
and in the right places. One-size-fits-all, across-the-board salary increases or freezes should be avoided. It is important to consider differences by country, industry sector, type of job, and employee performance.
This article highlights results from the 2011-2012 Culpepper Global Salary Budget Survey.
It includes salary budget data from 1,065 participating organizations with employees across
95 countries and 24 international geographic regions.
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Annual Salary Reviews Most Common:
Most organizations review base salaries annually on a common focal date.
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Global Salary Increase Budgets Rise:
Average global base salary increase budgets across all jobs and locations are projected
to rise from 3.26% in 2011 to 3.39% in 2012.
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Technology Sectors Lead the Way:
Base salary increases in cleantech & alternative energy, semiconductor, and Internet/digital
content & services sectors are projected to outpace other sectors in 2012.
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Fewer Companies Freezing Salaries:
The number of companies freezing salaries across all jobs and locations is projected
to decline from 4.4% in 2011 to 2.9% in 2012.
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U.S. Salary Increases:
Base salary increases in the U.S. are projected to rise from 2.92% in 2011 to 3.01% in 2012,
with most companies budgeting 3.0% in 2012.
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Canada Salary Increases:
Base salary increases in Canada are projected to rise from 2.76% in 2011 to 2.94% in 2012,
with most companies budgeting 3.0% in 2012.
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Paying for Performance:
Most companies in the U.S. and Canada are budgeting salary increases of 5.0% for high-performing
employees, 3.0% for average-performing employees, and no increases for low-performing employees.
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Global Regions with the Highest Salary Increases:
Base salary increases in South Asia, South America, the former Soviet Republics
(i.e., Commonwealth of Independent States), and Africa are higher and more volatile
than other regions of the world.
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Global Regions with the Lowest Salary Increases:
Base salary increases in the Eurozone (€), member states of European Free Trade
Association (EFTA), and Northern America (i.e., United States and Canada) are lower
and more stable than other regions of the world.
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.
Since bottoming out in 2009, base salary budgets steadily climbed for two years and
are projected to rise slightly in 2012.
Table 1 provides aggregated average base salary increases for 2011 and 2012
for major geographic regions throughout the world.
Note: See bottom of page for footnotes and a list of countries included in
each geographic region. The comprehensive version of this report includes salary budget data
for 95 countries and 24 international geographic regions.
Table 2 provides aggregated average global base salary increases for 2011 and 2012
by industry sector.
Note: The comprehensive version of this report includes breakouts for the United States and Canada
by number of employees, industry sector, and ownership. Broad industry sector breakouts
for Technology and Life Sciences are available for countries in Latin America,
Europe, the Middle East & Africa, and Asia-Pacific.
In addition to the data tables and figures above, we provide a more comprehensive PDF report (57 pages, 53 tables)
with salary budget data and practices for 2011 and 2012. Topics include base salary increases,
salary range structure adjustments, budgets for promotional salary increases, and salary
budgeting & planning practices. Statistical metrics include averages (means) with and without zeros,
medians, and percentile ranges (10th, 25th, 33rd, 40th, 50th, 60th, 67th 75th, and 90th).
Availability of Comprehensive Report:
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2011-2012 Culpepper Salary Budget Survey Report
Free to participants in 2011-2012 Culpepper Salary Budget Survey.
-
2011-2012 Culpepper Salary Budget Survey Report (57 pages, 53 tables)
Free to Culpepper Library and Culpepper Small Business Plus subscribers.
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2011-2012 Culpepper Salary Budget Survey Report (includes March 2012 Salary Budget Update)
$495 USD for non-participants (Order Form)
Data Source: 2011-2012 Culpepper Salary Budget Survey of 1,065 participating organizations.
Survey Dates:
June 21, 2011 through August 24, 2011
Participants by Sector:
Technology 38.4%, Life Sciences 10.7%, Healthcare 9.0%, Manufacturing 12.2%, Financial Services 4.9%,
Retail & Distribution 4.8%, Energy & Utilities 3.6%, Engineering/Construction/Architecture 2.9%,
Business Services 2.5%, Transportation/Logistics Services 2.3%, Insurance 2.3%,
Media & Publishing 1.9%, Other 4.5%
Participants by Number of Employees:
Up to 100: 18.5%, 101 to 500: 19.3%, 501 to 2,500: 25.1%, 2,501 to 10,000: 23.2%, Over 10,000: 13.9%
Participants by Ownership/Corporate Status:
Public 40.6%, Private 44.5%, Non-Profit 13.1%, Other 1.8%
The base salary increase data in this report includes COLA (cost of living adjustments),
merit increases, mandatory increases required by government statutes and union contracts,
and other non-merit increases. It excludes promotional increases.
Footnotes for Geographic Regions:
[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:
Dominican Republic, Puerto Rico, Trinidad & Tobago, and other Caribbean islands and territories.
[3] South America includes data collected for the following countries:
Argentina, Bolivia, Brazil, Chile, Colombia, Ecuador, Guyana, 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 includes data collected for 17 member states in the European Union that have
adopted the euro (€) as their official currency: Austria, Belgium, Cyprus, Estonia, Finland, France, Germany,
Greece, Ireland, Italy, Luxembourg, Malta, Netherlands, Portugal, Slovakia, Slovenia, and Spain.
[6] Non-Eurozone includes data collected for 10 member states in the European Union that have not
adopted the euro (€) as their official currency: Bulgaria, Czech Republic, Denmark, 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, Kazakhstan,
Kyrgyzstan, Moldova, Russia, 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, United Arab Emirates, and Yemen.
(Iran and Syria were not included in the survey).
[11] North Africa includes data collected for the following countries: Algeria, Egypt,
Morocco, and Tunisia. (Libya, Sudan, and Western Sahara were not included in the survey).
[12] Sub-Saharan Africa includes data collected for the following countries: Ghana, Kenya,
Mauritius, Mozambique, Nigeria, Senegal, South Africa, Tanzania, and Zimbabwe.
[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, South Korea, and Taiwan.
[15] Southeast Asia is a subset of Asia and includes data collected for the following countries:
Indonesia, Malaysia, 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 want to copy portions of this report into your own publication,
please cite the source by including the following:
“Source: 2011-2012 Culpepper Salary Budget Survey, September 2011, www.culpepper.com.”
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