2007 Pay Increase Budgets Grow in Arizona, Nevada and New Mexico

The newly released Compensation Data ñ Southwest annual survey of 170 companies in Arizona, Nevada and New Mexico found pay increase budgets are 3.8 percent for 2007 and are projected to stay the same in 2008. These numbers have increased over the last three years. They were 3.74 percent in 2006 and 3.58 percent in 2005.

National pay increase budgets were lower than those reported for the region at 3.65 percent. When comparing areas of each, Arizona pay increase budgets were highest in the Tucson/Southern Arizona area, 3.88 percent. New Mexicoís were highest in the South at 4.63 percent, while Nevadaís were highest in Reno/Northern Nevada, 3.97 percent.

Pay increase budgets vary slightly by industry for all three states. Results showed the health care industry had the highest, 4.27 percent. Distribution and warehouse had the lowest, 3.48 percent.

To attract and retain top performers, employers should ensure theyíre offering a complete compensation package, said Amy Kaminski, manager of marketing programs for Compdata Surveys. Because not all employees are motivated by routine raises, organizations should look to other methods to boost their compensation packages. These could include increased time off and the introduction of flexible schedules.