Salaries to increase 3.7 percent in 2007
Base pay will rise at a similar rate as in 2006, while opportunities for performance-related bonuses increase, finds survey of more than 1000 employers.

NEW YORK (CNNMoney.com) -- Salaried workers can expect to see their base salaries rise 3.7 percent in 2007, nearly the same increase as in 2006, according to a new survey.

But opportunities for salary awards tied to high performance remain available to many employees next year, according to the survey of 1,028 large organizations by Hewitt Associates.

Executive employees are projected to see salary increases of 3.8 percent, compared with 3.6 percent for salaried workers who receive overtime and 3.3 percent for union employees.

Variable pay will make up 11.0 percent of companies' total payroll, down slightly from 11.2 percent this year.

Variable pay has grown since the early 1990s, when only 51 percent of companies offered it, to 80 percent of companies in the survey.

"In today's competitive global economy, companies are unwilling to increase costs to their bottom line; therefore, they are relying on variable pay to help motivate employees and help them cope with growing economic pressures," said Ken Abosch of Hewitt.

"The bottom line is that variable pay is a smarter way to manage a business in a good or bad economy."

Workers in some industries will see more gains than others. Industries with above-average gains include energy (4.5 percent), construction/engineering (4.1 percent) and aerospace (4.0 percent).


Report: Most not seeing real wage gains

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Most stock quote data provided by BATS. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer. Morningstar: © 2018 Morningstar, Inc. All Rights Reserved. Factset: FactSet Research Systems Inc. 2018. All rights reserved. Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Standard & Poor's and S&P are registered trademarks of Standard & Poor's Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2018 and/or its affiliates.