2020 SALARY PROJECTIONS
December 23, 2019
Each year CNI Recruiting and our subsidiary Best Recruiting compile salary projections from respected sources and announce the average salary projection for the coming year. The average salary projection across all employment categories for 2020 is 3.2%.Â
Projections By Source
• Salary.com (Compensation data) 3.3%
• Willis Towers Watson (Data services) 3.2%
• WorldatWork (Compensation data) 3.3%
• The Conference Board (Business research) 3.0%
• Society for Human Resource Managers (Human resources membership firm) 3.3%
Highlights
WorldatWork projects continued consistency from 2019 into 2020 across the following wage categories: Non-exempt, hourly, non-union 3.3%; non-exempt, salaried 3.2%; exempt, salaried 3.3% and officers 3.3%.
According to the Society for Human Resource Managers, over 75% of U.S. employers will keep salary increase budgets at the same level as 2019. Average performers will receive salary increases that average 2.7% and top performing employees will receive increases that average 4.6%.
Employees who change jobs continue to receive salary increases that are significantly greater than average and for this reason job hopping continues to increase according to HR Dive. Other employee groups that are projected to receive greater than average salary increases are: Salaried employees at small companies, employees at large, privately held companies, employees at technology companies and employees receiving promotions.
ADP reports salary increases during the third and fourth quarters of 2019 are significantly higher than in the first two quarters and the above projections for 2020.
One of the trends over the past few years that is contributing to the modest level of salary increases and that is projected to continue in 2020 is the increased use of variable compensation, such as bonuses instead of increases in salary. This is because variable compensation is not a permanent adjustment and doesn’t compound over time. Bonuses based on company or unit success and individual performance are projected to be the most prevalent type of variable pay.
CNI Recruiting and our subsidiary company Best Recruiting recruit Sales, Marketing, Operations and IT candidates at all professional levels. We are located in New Jersey and recruit throughout the U.S. We maintain an internal database of over 120,000 qualified candidates that allows us to quickly refer candidates who meet your job, cultural and budgetary requirements, even in a tight labor market. Our referral fee is only 10% of candidate first year base salary including executive searches. We provide World Class Service and a market leading guarantee in the event a candidate resigns or is terminated for any reason within of six months of date of hire.
Please contact us today for recruiting assistance. Just call (908) 874-6148, email [email protected], or fill out the form below. We will exceed your expectations.
Fred Neufeld
President
CNI Recruiting
www.cnirecruiting.com
