Compensation is on the Rise in 2007

It seems like there are lots of projections on compensation crossing my desk this month as the new year kicks off. Here are the results of another survey on compensation trends that reflects the perspective of 240+ global senior executives and managers conducted by NFI Research.

Compensation will rise this year at the majority of businesses.

  • Eighty-four percent of executives and managers expect the compensation of their team members to increase.
  • Sixteen percent of executives and managers expect compensation will remain the same.
  • No executives and managers see a decrease in compensation.

The top three reasons executives and managers give for the compensation increase:

  1. Business conditions (58 percent)
  2. Performance (47 percent)
  3. Employee retention (46 percent)

“Market conditions are the primary driver of compensation increase as businesses try to retain employees to handle the expected business growth,” NFI CEO Chuck Martin said.

There were no great differences in responses between senior executives and managers or organization size.

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