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Not-For-Profit Pay Increase Budgets Continue to Decrease in 2010

Although many economists have predicted the U.S. may see a very modest economic improvement in 2010, pay increase budgets have continued to decline over the past year

Although many economists have predicted the U.S. may see a very modest economic improvement in 2010, pay increase budgets have continued to decline over the past year. The newly released 2010 Compensation Data Not-For-Profit survey results show pay increase budgets have fallen to 1.7 percent, down from 2.4 percent in 2009. Little change is expected over the next year, as not-for-profit organizations predict a slight uptick in 2011 to 1.8 percent.


With a slow economic recovery expected, organizations are continuing to make conservative compensation choices, said Amy Kaminski, director of marketing for Compdata Surveys, the nation's leading compensation and benefits survey data provider. Although keeping current employees on staff is a top concern during the jobless recovery predicted by most economists, increasing pay will continue to be a difficult priority until an upswing in the economic climate becomes more visible.


According to the survey, pay increase budgets vary within the industry as associations had the highest pay increase budget, 2.3 percent. Libraries followed at 2.1 percent. Churches and religious organizations and colleges and universities reported pay increase budgets of 1.5 percent and 1.3 percent, respectively. Government entities reported the lowest pay increase budget, 1.2 percent. Associations are projecting the highest pay increase budget in 2011 at 2.5 percent, with government entities projecting the lowest, less than 1 percent.


The survey results also show pay increase budgets are consistent across different regions of the country. Not-for-profit organizations in the Northeast and South Central reported the highest pay increase budgets, 1.9 percent. This is closely followed by organizations in the Midwest and West regions at 1.8 percent. Organizations in the Southeast reported the lowest budget, 1.2 percent. Respondents in the South Central are projecting the highest pay increase budgets for 2011, 2.1 percent. Companies in the Northeast follow at 2 percent.