AonHewitt

Aon Hewitt's survey of more than 500 employers found thatthree-quarters of companies expect to reach or exceed businessperformance goals this year, leading to the stabilization of payand variable pay budgets in 2011. Most companies (56 percent) madeno revisions to their original base salary increase budgets, whichare anticipated to be at their highest levels in two years. In2011, salary increases for salaried exempt workers (those workersfor whom overtime rules do not apply) are expected to be 2.8percent. This is up from 2.4 percent in 2010, and significantlyhigher than the record-low pay raises workers saw in 2009 (1.8percent).

Spending on variable pay--performance-based awards that must bere-earned each year--is also holding steady. Updated findings show2011 spending on variable pay as a percentage of payroll will be11.6 percent for salaried exempt workers, down just slightly fromoriginal projections of 11.8 percent.

In addition, Aon Hewitt's survey shows that none of theseorganizations anticipate cutting pay in 2011, and just 11 percentplan to freeze salaries for salaried exempt and non-exempt workersnext year, which is similar to 2010, when 12 percent oforganizations froze salaries.