As the economy struggles to regain its footing, pay increase budgets increased for hospitality organizations this year. The 2012 Compensation Data Hospitality survey results reported pay increase budgets at 2.7 percent, reflecting an increase from 2.4 percent reported in 2011 and 1.9 percent reported in 2010. Pay increase budgets are projected to increase slightly in 2013, up to 2.9 percent.
“For the past few years, pay increase budgets for many industries have stagnated or experienced only lukewarm increases,” said Amy Kaminski, director of marketing for Compdata Surveys. “This will likely continue to be the trend until employers begin to feel economically comfortable.”
Pay increase budgets vary by industry as resorts report the highest 2012 budget at 2.8 percent. Casinos, hotels and restaurants reflected pay increase budgets of 2.7 percent. All industries expect increases in 2013. According to the results, pay increase budgets vary by state as well, ranging from 2.4 percent to 3.1 percent across the country.
Pay increase budgets are used to make many different types of adjustments to employees’ salaries. More than 65 percent of hospitality organizations report using pay increase budgets for merit increases, while 34.4 percent used pay increase budgets for market adjustments. Nearly 30 percent of hospitality employers used their pay increase budgets for promotional increases, while 23 percent of organizations utilize pay increase budgets to implement cost of living adjustments.
About the Survey
The 2012 Compensation Data Hospitality results provide a comprehensive summary of pay data, benefits information and pay practices with an effective date of March 1, 2012. More than 100 industry-specific job titles and 400 benchmark titles were surveyed ranging from entry-level to top executives, with data collected from more than 3,600 hospitality organizations across the country.
Compdata Surveys is the nation’s leading compensation and benefits survey data provider. Thousands of U.S. organizations provide data each year ensuring the reliability of our results. Compdata Surveys has been providing comprehensive data at affordable prices to organizations from coast to coast since 1988. For further information about the compensation and benefits surveys, contact Michelle Willis at (800) 300-9570.