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In 2013, the average salary increase was 3% of base pay.  This trend may continue in 2014.  Read on to learn how this trend may affect your company and employees.   


- Ann Clifford, President 
Dos & Don'ts    


"Should I increase an employee's salary based on competition or based on performance?"


                       (Answer provided at the end of the newsletter.)

7 Projections Affecting Salary Levels


According to the 7th annual Compensation Planning Survey by Buck Consultants, more employees are likely to receive less than 3 percent pay increases in 2014 due to pay differentiations based on performance. Lower overall salary budgets mirror the slow market recovery. The survey projects the economy and the labor market could affect 2014 salary negotiations in these 7 ways: 

  1. Workers will begin to feel empowered as job-loss fears decrease.
  2. Market forces will temper merit increases.
  3. IT, healthcare, energy will earn significantly more.
  4. Accounting/Finance compensation will trend a bit higher than average.
  5. Performance pay will rise with business success.
  6. Big salary increases will be for new hires only.
  7. Specialists can earn outsized pay hikes.

3 Reasons Why Your Compensation Plan Is Not Competitive


Business owners often think they are competing for talent from like-kind businesses.  Yet, pay must be relatively competitive within the larger labor market to attract and retain employees.  Here are three reasons your compensation plan is not competitive:

  1. Don't know who are your talent competitors.
  2. Everyone gets the same merit raise without regard to value.
  3. Lack of proven upside compensation or advancement potential.
If successful in persuading a candidate to join your company for a lower base salary than their previous job, be very cautious.  Your risk is reduced if you can paint a clear future for earning more than what they could have earned if they stayed in their current position. Yet, without a clear earnings future, candidates may not bring the level of commitment you desire.
Safari Interview Tip 

Be open and direct when discussing compensation.  Early in the interview process, request each candidate provide past compensation for the past three years.  If your position offers a salary that is 90% or less of their current salary, you may be too far off to attract them, especially if they are currently employed.

Answer to Today's Dos & Don'ts  


"Should I increase an employee's salary based on competition or based on performance?"  


Increase an employee's salary based on his or her performance, yet stay within range of your competition.  Best to offer a starting salary that is higher than the median of the specific job within your location.  By doing so, your employee's salary (after periodic raises) should typically remain higher than other like-kind workers outside your company. 

Stay current with
hiring trends.

Safari Guide 
View the 2014 Average Salary Increases by Industry 
and Job Classification


Featured Jobs
Safari Blog

5 Benefits of Higher Starting Salaries


If you are wondering what's in it for your business to offer a higher wage for your entry-level employees, you may want to . . . 


Read on for the full article.

Safari Quiz

How often should employees receive a raise?


A.  6 months

B.  1 year

C.  Based on performance

D.  Randomly



Safari Solutions
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About Us
Safari Solutions' (RPO) services help companies hire better. Acting as a corporate HR partner, we help companies make educated hiring decisions by sourcing, screening, and evaluating candidates with a high level of due diligence. Hundreds of business owners have improved hiring results using Safari Solutions' Tiger Eye Hiring™ process.