Salary raises so far in the '80s at a 10-year low, study says
Pay increases for salaried workers this year are the lowest in a decade, says a report by Sibson & Co., a compensation consulting firm. The increases are averaging 6.6 percent and will average 6.5 percent in 1985 - still staying ahead of the rate of inflation and allowing employees to make ''real earnings gains,'' the company asserts.
Even with a healthy business climate, compensation executives are still sensitive to cost control and are moving in the direction of relating pay to performance. For example, 32 percent of the respondents to the Sibson annual salary planning survey have extended or are considering extending the use of bonus incentive plans. Unlike salary costs, which are fixed, bonuses vary according to individual and company performance.