2007 Pay Increase Budgets Grow in Colorado and Utah

The newly released Compensation Data ñ Colorado/Utah annual survey of 105 companies found pay increase budgets are 3.70 percent for 2007 and are projected to be 3.67 percent in 2008. These numbers are up slightly from 2006 when they were 3.61 percent in both states. Over the last three years, these numbers have grown consistently.

National pay increase budgets were lower than those reported for both states at 3.65 percent. When comparing areas of each, Colorado pay increase budgets were highest in the Denver/Northern Colorado area, 3.59 percent, and Utahís were highest in the Salt Lake City/Northern Utah area, 3.75 percent.

Pay increase budgets vary slightly by industry for Colorado and Utah. Results showed companies in technology had the highest, 4.07 percent. Distribution and warehouse companies had the lowest, 3.32 percent. Many have talked about hiring shortages in health care, and current pay increase budgets were reported at 3.55 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.