Survey notes slowdown in salary increases

salary increases

A survey conducted by consulting firm Willis Towers Watson showed that salary increases in the private sector are slowing down as employers now use merit-based reward systems. According to the survey, employers hold off on adjusting salaries to make sure top performers are rewarded. For 2016, the average increase was only 5%, a notch lower than the 6% increase budgeted by companies. The 1% difference is due to the companies’ merit-based system, where only high performing employees are rewarded. In terms of bonuses, business process outsourcing (BPO) firms were among those that gave the lowest last year, giving a mere 0.9 month worth of bonus.