Key Observations General Industry Salary Budget Survey - U.S. Results Preview. Towers Watson Data Services. Data Delivery
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1 Towers Watson Data Services 2015 General Industry Salary Budget Survey - U.S. Results Preview Thank you for participating in the 2015 General Industry Salary Budget Survey - U.S. To express our appreciation, we are providing you with a preview of the survey results. Your preview includes data on total s, promotional increases, variable pay and salary increases related to performance s. The data are segmented by employee groups, including executives; management, ; exempt, ; nonexempt salaried; and nonexempt hourly. The average s are reported with zero-percent included and excluded. The 2015 General Industry Salary Budget Survey - U.S. was conducted in early May 2015 through mid-july The complete results are based on the of 1,116 organizations and will be available in early September. Data Delivery The 2015 General Industry Salary Budget Survey Report - U.S. will be available via CompSource Published, which gives subscribers the ability to view, download and print reports. Key Observations The average total increase to base salaries projected for 2016 is slightly more optimistic than those already granted or budgeted for 2015, across most employee groups. Fewer organizations are projecting 0% overall base s in 2016 (1.9% of respondents) than already granted or budgeted for 2015 (3% of respondents). Executive short-term incentive bonus percentages projected for 2016 are showing a slight decline from percentages awarded in 2015 where discretionary bonus award percentages are expected to hold steady in 2016.
2 Total Salary Increases Total increases, percentage of salary 2014 s 2015 s 2016 s granted budgeted projected Executives 3.2% % % % % % % % % 715 Nonexempt salaried 2.9% % % 544 Nonexempt hourly 2.9% % % 639 Total increases, percentage of salary Including companies granting no increases 2014 s 2015 s 2016 s granted budgeted projected Executives 3.0% % % % % % % % % 728 Nonexempt salaried 2.8% % % 567 Nonexempt hourly 2.8% % % 650 twdataservices.com 2015 General Industry Salary Budget Survey - U.S. 2
3 Promotional Increases Formal promotional increase budgets Organizations that have an established formal promotional increase budget organizations Percentage of organizations % 1,089 overall promotional increase budget as a percentage of total base salaries 25th percentile Median 75th percentile 0.5% 0.6% 1.0% 0.9% 214 Variable Pay Short-term incentive/bonus 2014 actual short-term incentive/bonus granted 2015 short-term incentive/bonus budgeted 2016 short-term incentive/bonus projected Median Median Median Executives 46.2% 41.0% 44.9% 41.0% 43.9% 40.0% % 18.0% 21.0% 18.0% 20.5% 18.0% % 10.0% 10.9% 10.0% 10.7% 10.0% 508 Nonexempt salaried 6.4% 5.0% 6.3% 5.0% 6.1% 5.0% 280 Nonexempt hourly 5.8% 5.0% 5.7% 5.0% 5.7% 5.0% 310 Discretionary bonus awards 2014 actual discretionary awards granted 2015 discretionary awards budgeted 2016 discretionary awards projected Median Median Median Executives 16.1% 7.0% 17.4% 10.0% 17.4% 10.0% % 3.0% 7.9% 5.0% 8.0% 5.0% % 2.0% 5.2% 3.0% 4.9% 2.3% 135 Nonexempt salaried 3.8% 2.0% 4.4% 2.4% 4.1% 2.0% 82 Nonexempt hourly 3.2% 2.0% 3.8% 2.0% 3.7% 2.0% 90 twdataservices.com 2015 General Industry Salary Budget Survey - U.S. 3
4 Salary Increases Related to Ratings s and average s 5.0% % 3.0% 2.0% % 0% excluding executives Nonexempt salaried Nonexempt hourly % granted for those with highest possible % granted for those with above-average % granted for those with average % granted for those with belowaverage 4.6% 3.5% 2.6% 0.7% % 3.5% 2.6% 0.7% 725 Nonexempt salaried 4.6% 3.5% 2.6% 0.7% 475 Nonexempt hourly 4.5% 3.4% 2.5% 0.6% 557 The disparity in s between stars and average performers remains pronounced. employees receiving the highest possible were granted an average increase of 4.6%, almost 77% higher than the 2.6% increase granted to those receiving an average. twdataservices.com 2015 General Industry Salary Budget Survey - U.S. 4
5 Salary Increases Related to Ratings (continued) s and average salary increases for management, excluding executives s and average salary increases for exempt, salary 13.1% 4.6% 30.6% 3.5% 51.9% 2.6% salary 9.9% 4.6% 29.0% 3.5% 55.9% 2.6% 4.4% 0.7% 5.2% 0.7% Number of : 719 Number of : 725 s and average salary increases for nonexempt salaried salary 8.5% 4.6% 26.3% 3.5% 58.6% 2.6% s and average s for nonexempt hourly salary 9.2% 4.5% 25.0% 3.4% 59.8% 2.5% 6.6% 0.7% 5.9% 0.6% Number of : 475 Number of : 557 twdataservices.com 2015 General Industry Salary Budget Survey - U.S. 5
6 Towers Watson Data Services Towers Watson Data Services is a leading provider of compensation, benefits and employment practices information to the global employer community. Our databases are recognized worldwide as a premier source of current data for compensation planning. Towers Watson Data Services 44 South Broadway, 13th Floor White Plains, NY T F twusdata@towerswatson.com twdataservices.com About Towers Watson Towers Watson is a leading global professional services company that helps organizations improve performance through effective people, risk and financial management. With 16,000 associates around the world, we offer consulting, technology and solutions in the areas of benefits, talent management, rewards, and risk and capital management. Learn more at towerswatson.com. Copyright 2015 Towers Watson. All rights reserved. TWDS-NA L twdataservices.com /towerswatson
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