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March 2011
For the most current salary increase budget data, see the
2012 Salary Budget Update Survey.
As the economy and job market continue to show signs of improvement, most companies
have increased their cash compensation budgets. Results from the
2011 Culpepper Salary Increase Budget Update Survey reveal
that salary budgets for 2011, including salary increases, salary range increases, promotional
increases, and variable incentives are all higher than 2010. Additionally, the number of companies
freezing salaries has significantly declined and salary cuts have nearly disappeared.
This article highlights results from the 2011 Culpepper Salary Increase Budget Update Survey.
It includes salary increase data collected from 809 participating organizations
with employees across 85 countries and 24 geographic regions.
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Salary Increases Rise: Average global base salary increases across
all jobs and locations are projected to rise from 2.59% in 2010 to 3.18% in 2011. Most
companies are budgeting salary increases of 3% for 2011.
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U.S. Salary Increases: Base salary increases in the United States are
projected to rise from 2.38% in 2010 to 2.86% in 2011.
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Canada Salary Increases: Base salary increases in Canada are projected to rise from 2.26% in 2010 to 2.83% in 2011.
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Salary Freezes Thaw: The number of companies freezing salaries across all jobs and locations is
projected to decline sharply from 14 percent in 2010 to 5 percent in 2011.
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Technology and Energy Sectors Lead the Way: Base salary increases in technology and
energy sectors are projected to outpace other sectors in 2011.
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Paying for Performance: Most companies are budgeting salary increases of 5% for high
performing employees, 3% for average performing employees, and 0% for low performing employees.
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Small Companies Provide Higher Increases than Large Companies: Base salary increases for start-ups
and small companies are typically higher than large companies.
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Promotional Salary Increases Jump: Salary increase budgets for employees promoted to a higher
job level or position of responsibility are projected to jump from 7.61% in 2010 to 9.93% in 2011.
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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.
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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.
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 2011 have improved significantly compared to 2009. However, average
projected base salary increases for 2011 are still much lower than 2008.
Table 1 provides aggregated average base salary increases for 2010 and 2011
for major geographic regions throughout the world.
Note: 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.
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 and energy sectors are projected to outpace other sectors in 2011.
It is also worth noting that, on average 2011 budgeted base salary increases for small
companies are significantly higher than large companies.
Data Source: 2011 Culpepper Salary Budget Update Survey of 809 organizations.
Survey Dates:
January 4 through March 4, 2011
Participants by Sector:
Technology 42.2%, Life Sciences 10.6%, Healthcare 7.9%, Energy 3.1, Engineering 2.2%, Other 34.0%
Participants by Number of Employees:
Up to 100: 21.6%, 101 to 500: 21.3%, 501 to 2,500: 24.7%, 2,501 to 10,000: 19.5%, Over 10,000: 12.9%
Participants by Ownership/Corporate Status:
Public 36.4%, Private 48.9%, Non-Profit 12.9%, Other 2.6%
The salary increase data in this report includes COLA (cost of living adjustment), inflation,
merit, and other non-promotional increases. All 2010 data provided in this report is based on data
collected from the
2010-2011 Culpepper Salary Budget & Planning Survey
published in September 2010.
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.
Estonia joined the Eurozone in January 2011.
[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, 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.
[11] North Africa includes data collected for the following countries: Algeria, Egypt, Morocco, and Tunisia.
(Note: Libya, Sudan, and Western Sahara were not included in the survey).
[12] Sub-Saharan Africa includes data collected for the following countries:
Cameroon, 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, 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 decide to copy portions of this report into your own publication,
please cite the source by including the following:
“Source: Culpepper Salary Budget Survey, March 2011, www.culpepper.com.”
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