U.S. Companies Planning A Three Percent Wage Hike Next Year

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U.S. Companies Planning A Three Percent Wage Hike Next Year

Companies in the United States are expected to implement a steady wage hike next year, according to the latest survey conducted by Towers Watson, a global professional services company.

Based on the results of the survey, U.S. companies (98%) are planning to give an average wage hike of 3% for nonexempt management employees in 2016. Those employees received a similar wage hike this year and in 2014.

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Employers are also plan to increase a 3% salary increase for nonexempt salaried and nonexempt hourly employees and 3.1% wage hike for executives and management employees next year.

The survey also found that employers continue to reward their best performing employees with a significant wage increase to retain them amid a tightening labor market.

Additionally, the survey found that exempt workers with the highest performance ratings received a wage hike of 4.6% this year, approximately 77% higher than the 2.2% salary increase given to workers with an average rating.

The number companies raising wages has been climbing steadily since 2008.

A 3% wage hike is a new norm in the United States

Sandra McLellan, practice leader