Is a 5% bump for your top performers enough? That's the 64K question...
My source for all things compensation related, Ann Bares of Compensation Force, has broken down the merit pay side of the most recent Mercer Comp Survey. According to Mercer's survey, the highest performing employees are expected to receive base pay increases of 5.7% in 2007, compared to 3.5% for average performers and 1.7% for the weakest performers. Over 1,000 large companies participate, so it feels valid and the numbers seem about right:
Average pay increase percent by rating group according to Mercer via Ann:
- Highest-rated employees (12% of workforce): 5.7%
- Next highest-rated employees (28% of workforce): 4.5%
- Middle-rated employees (52% of workforce): 3.5%
- Low-rated employees (6% of workforce): 2.0%
- Lowest-rated employees (3% of workforce): 1.7%
The big question in my mind remains the same. Would you downsize a low performer and not get the headcount back to thrill your high performers with a bigger increase?
