Illinois Pay Increase Budgets Hold Steady in 2007

The newly released Compensation Data ñ Illinois annual survey of 367 companies found pay increase budgets are 3.51 percent for 2007 and are projected to be 3.53 percent in 2008. These numbers have changed little from 2006 when they were 3.5 percent in Illinois. In the last three years, these numbers saw the greatest increase from 2005 to 2006, when pay increase budgets were 3.41 percent.

Although the results show pay increase budgets for Illinois have changed little, this trend is also seen nationally. National pay increase budgets were 3.65 percent in 2007. And while this number is higher than the state average, the difference between the two is relatively small. When compared to the rest of the state, pay increase budgets were highest at 3.62 percent in Chicago West, which includes De Kalb, Du Page and Kane counties.

Illinois pay increase budgets vary slightly by industry. Results showed service organizations had the highest, 4.02 percent. Distribution and warehouse companies had the lowest with 3.37 percent, according to the results. While many have talked about hiring shortages in health care, current pay increase budgets have decreased from 2006, when they were 3.6 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.