Florida Pay Increase Budgets Remain the Same in 2008

The newly released Compensation Data ñ Florida annual survey of 238 companies found pay increase budgets are 3.72 percent for 2008 and are projected to be 3.70 percent in 2009. These numbers have changed little from 2007 when they were 3.90 percent. Over the last three years, there has been no statistically significant difference in reported pay increase budgets for the state.

Although the results show pay increase budgets for Florida have remained stagnate, this trend is also seen nationally. National pay increase budgets were 3.60 percent in 2008. And while this number is lower than the state average, the difference between the two is small. When compared to the rest of the state, pay increase budgets were highest in the West Palm Beach area and lowest in the Tallahassee area.

Florida pay increase budgets vary slightly by industry. Results showed the services industry had the highest, 4.49 percent, and utilities followed with 4.63 percent. In contrast, the distribution/warehouse industry had the lowest with 3.22 percent, according to the results.

ìThere has been a prevalent trend towards stagnant pay increases for several years,î said Amy Kaminski, manager of marketing programs for Compdata Surveys. ìWith predictions of a recession looming, companies should carefully consider how competitive their total compensation packages are. Employers are facing workforce shortages in many industries and should work to create a balanced compensation plan for their company to aid in retention of current employees.î