Minnesota and Wisconsin Pay Increase Budgets Remain the Same in 2008

The newly released Compensation Data ñ Minnesota/Wisconsin annual survey of 147 companies found pay increase budgets are 3.58 percent for 2008 and are projected to stay the same in 2009. These numbers have changed little from 2007 when they were 3.73 percent. Over the last three years, there has been no statistically significant difference in reported pay increase budgets for Minnesota and Wisconsin.

Although the results show pay increase budgets for Minnesota and Wisconsin have remained stagnate, this trend is also seen nationally. National pay increase budgets were 3.60 percent in 2008. And while this number is higher than the two statesí average, the difference between the two is relatively small. When comparing areas in Minnesota and Wisconsin, pay increase budgets were highest in Southern Minnesota and lowest in Northern Minnesota.

Minnesota and Wisconsin pay increase budgets vary slightly by industry. Results showed technology organizations had the highest, 4.50 percent. The services and healthcare industries followed with 3.98 and 3.75 percent, respectively. In contrast, distribution and warehouse had the lowest pay increase budgets, 3.23 percent.

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