If you’re wondering about the likelihood of a salary raise in 2016, there’s reason to be optimistic, especially if you have the necessary skills and are one of the top performers. According to CNN Money, salary raises in 2016 won’t rock anyone’s world, but base pay raises for next year for the rank-and-file as well as executives and managers will be 3 percent on average. That rate keeps salary growth well ahead of inflation, currently at 1.7 percent.
For those top performers and those with special skills, including those gained through an online MBA program, the rewards can be more lucrative. According to a survey of 1,100 mostly large employers by professional services firm Towers Watson, top performers in 2016 will make out way better than lesser ones. The very best employees can expect an average salary raise of 4.6 percent next year versus just 2.6 percent for average players.
And more good news: The survey found that only 1.9 percent of companies are not planning to offer any salary raises at all in 2016. On the bonus front, a key component of the compensation package that many with an online MBA degree program enjoy, the Towers Watson survey projected an average bonus payout of 17.4 percent for executives, 8 percent for managers and 4.9 percent for non-managers who are exempt from overtime.
Who will benefit the most?
According to The Conference Board, an independent business membership and research association, labor markets have tightened much faster than anticipated. As a result, businesses may soon have to offer higher wages, including 2016 salary raises.
That report goes on to say that salaries are already increasing for two types of employees: young adults and new hires. These salary increases restore pay parity for these groups, both of whom suffered pay cuts during and right after the recession. Specifically, wage growth among workers ages 21 to 25 years old has increased considerably in the past three years. This period of employment is also when some managers choose to pursue an online MBA program.
According to a survey conducted by the Society for Human Resource Management and Rutgers University, pay for new hires also is increasing, reflecting a need for businesses to lift pay to attract highly qualified workers. It may be worth considering getting into an online MBA program to position yourself well for the highest starting salary and the possibility of a promotion.
Learn more about UT Tyler’s online MBA programs.