2007 Pay Increase Budgets Grow in Iowa and Nebraska

The newly released Compensation Data ñ Iowa/Nebraska annual survey of 221 companies found pay increase budgets are 3.68 percent for 2007 and are projected to be 3.7 percent in 2008. These numbers are up from 2006 when they were 3.58 percent in both states. This is the first notable increase seen for the area in the last three years.

National pay increase budgets were close to those reported for both states at 3.65 percent. When comparing areas of each, Iowa pay increase budgets were highest in Cedar Rapids, 4.09 percent, and Nebraskaís were highest in Lincoln, 3.72 percent.

Pay increase budgets vary slightly by industry for Iowa and Nebraska. Results showed companies in the technology industry had the highest, 4.25 percent. Not-for-Profit had the lowest, 3.47 percent. Many have talked about hiring shortages in health care, and current pay increase budgets were reported at 4.22 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.