Pay won't buy you loyalty and retention--that's the finding of the 2008 CEO survey conducted by Management Action Programs. Employees want open communications between management and employees more than they want a pay raise.

In a Wyatt study, those companies with effective communications had 47% higher total return to shareholders compared with those that communicate less effectively. In that same study, Wyatt identified 6 management practices of high-performing companies:

• Focusing managers and other employees on customer needs
• Engaging employees in running the business
• Helping managers communicate effectively
• Leveraging the talents of internal communicators to manage change effectively.
• Measuring the impact of communication
• Branding the employee experience.

The message is clear--those companies who communicate frequently and effectively to their employees enjoy more success than others.

The WorldatWork Staff 2009 U.S. salary survey reports an average salary budget increase of about 4% for 2009, down only slightly from the 2008 level of 4.1%. The salary increase received by any individual employee may be very different from 4%, as increases tend to be more and more based on what a person does and the industry of their employer, according to the Economic Research Institute's Evergreen Salary Increase Survey. In general, individuals who earn less are seeing lower increases, while more skilled and higher earning individuals within certain job groups receive more.

Inflationary pressures may start pushing these numbers up. At the same time, the talk of recession may also hold them in check. It is a very volatile market and many employers are taking a wait and see approach toward wages in general.

Thanks to my good friends at Maine Public Broadcasting Network for seeking my expertise on this explosive issue. Listen to the 3 minute interview.