Compensation planning survey indicates slightly higher employee salary increases in 2003. (Communique).

U.S. employers are planning a slight increase in compensation next year, according to a new survey released by Buck Consultants, a leading global human resources consulting firm. Results from the "Compensation Planning for 2003" survey indicated the average 2003 salary increase is budgeted at 4.0 percent, a slight increase from the actual average increase of 3.9 percent granted in 2002.

"Economic uncertainty is the underlying factor in compensation planning for next year," said Antoinette Petrucci, a Buck Consultants principal. "While compensation planners expect a modest increase in pay for 2003, this year's experience taught them to hedge their bets. If a company isn't making money, it won't hesitate to trim its budget." During 2002, organizations implemented various measures to reduce their costs.

Some lowered their compensation budgets, others delayed scheduled increases and approximately 6 percent of the more than 700 employers surveyed froze salaries. In addition, just as this year's salary budgets were less than planned, some bonuses also were pared back. One-third of the participants paid bonuses at below-target levels (the median budget payout among respondents was 9 percent, compared to budgeted levels of 11 precent), and 20 percent ...