Goldman Sachs employees might be poised to earn record bonuses this year, but the average employee is lucky if she receives a raise that covers the cost of living. According to The Wall Street Journal, human-resource consultants Watson Wyatt Worldwide Inc. and Hay Group estimate that median pay raises for 2009 ranged between two and three percent.
Given that millions of Americans remain jobless and others are dealing with reduced hours, the barely there raises for employees might seem fair. But when the future isn't looking so good in terms of making up for this year's low or no pay increases, it's easy to see how the lack of incentive might encourage mediocre productivity. Another consulting firm, Hewitt Associates, ran a survey that indicates the same record low increase for 2009 determined by the other two surveys, and it predicts a minor improvement for 2010.
Did you receive a raise this year?