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3.5% That's the projected amount of average wage increases across all industry types and employees for 2007. According to the Society for Human Resource Managers (SHRM), this is the fourth year in a row that projected wage increases will remain under 4%. The effect is now starting to show on employee opinion surveys as well - satisfaction with compensation is down significantly (over 10% across the last 3 years.) There is good news - Social Security, aka the Cost of Living Adjustment or COLA, is only 3.3% for 2007 so we're ahead of the game!
Wage increases are meant to be celebrations - tenure with the company, recognition of good performance, continued company success. So, how do you make "only" 3.5% exciting? Employees don't recognize all the parts of their pay, they only see the net of their checks. You, on the other hand, see the whole picture - the Total Compensation Package.
Take this opportunity to show your employees how much they are REALLY worth to you and the organization - show them the unseen benefits you provide. Remind them that you pay the same amount into their Social Security and Medicare funds; show them the REAL cost of the benefits package they receive. Educate your employees - help them understand what 3.5% truly means to them. Not only will they become better informed employees but it will give you the opportunity to open communication with your employees and make them feel more involved with your organization!
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