Buck Consultants Survey: 3 Percent Salary Increase the “New Normal”

  Buck Consultants Survey: 3 Percent Salary Increase the “New Normal”

Employers increase use of short-term incentives as cost-effective way to
reward employees

Business Wire

NEW YORK -- November 08, 2012

While employees may not see much improvement in base pay next year, the
prevalence and size of short-term incentives has increased substantially,
according to the sixth annual “Compensation Planning Survey” released by Buck
Consultants, A Xerox Company (NYSE: XRX).

The survey analyzed responses from more than 350 organizations to determine
trends in compensation for the coming year.

The median salary increase in 2013 will be 3 percent, as employers continue to
be cautious with their salary budgets. Buck Consultants predicts that the new
normal for salary increases will settle at this 3 percent level.

The expected size of short-term incentive awards forecast for 2013 is greater
than the target payouts for 2012 and actual payouts in 2011 for all employee
groups except CEOs. Employers see a bonus or other short-term incentive – a
one-time expense as opposed to the annual expense of a salary increase – as a
cost-effective approach for rewarding employees.

Hiring and retention bonuses are offered by more than half of the
organizations surveyed (56 percent). Referral bonuses are also offered by 56
percent of organizations.

The prevalence of ongoing long-term incentives depends on employee level. For
example, stock options are offered to CEOs by 52 percent of survey respondents
but only offered to rank and file exempt employees by 29 percent.

“The results of this survey are similar to past years in terms of compensation
– slow growth, lots of challenges and not a lot of money to spend,” said David
Van De Voort, principal, Buck Consultants. “However, we’ve moved past the
environment of several years ago when employers were freezing pay and reducing
401(k) matches.”

In fact, more than two-thirds (67 percent) of survey participants cited a
focus on retaining top talent in 2013, and more will look to make additions to
their workforce. According to the survey, 46 percent are planning for normal
hiring and 19 percent will be adding staff.

About the Survey

Buck Consultants completed its survey in September. The survey includes
responses from 362 employers, representing virtually every sector of the U.S.
economy.

Buck’s survey report, “Compensation Planning for 2013,” is available at no
cost to the media by contacting Ed Gadowski at 910-253-9816. It is available
to other interested parties for $400 by calling 1-800-887-0509 or visiting
http://www.bucksurveys.com. The survey was produced by Buck Consultants’
Knowledge Resources group, which is responsible for national multi-practice
legal analysis and publications, government relations, research, surveys,
training, and knowledge management.

About Buck Consultants

Buck Consultants, A Xerox Company, is a leader in human resource and benefits
consulting with more than 1,500 professionals worldwide. Founded in 1916 to
advise clients in establishing and funding some of the nation’s first public
and private retirement programs, Buck is an innovator in the areas of
retirement benefits, health and welfare programs, talent and human resources
solutions, compensation, and employee communication. News and other
information about Buck Consultants are available at
http://www.buckconsultants.com.

About Xerox

With sales approaching $23 billion, Xerox (NYSE: XRX) is the world’s leading
enterprise for business process and document management. Its technology,
expertise and services enable workplaces – from small businesses to large
global enterprises – to simplify the way work gets done so they operate more
effectively and focus more on what matters most: their real business.
Headquartered in Norwalk, Conn., Xerox offers business process outsourcing and
IT outsourcing services, including data processing, healthcare solutions, HR
benefits management, finance support, transportation solutions, and customer
relationship management services for commercial and government organizations
worldwide. The company also provides extensive leading-edge document
technology, services, software and genuine Xerox supplies for graphic
communication and office printing environments of any size. The 140,000 people
of Xerox serve clients in more than 160 countries. For more information, visit
http://www.xerox.com, http://news.xerox.com or http://www.realbusiness.com.
For investor information, visit http://www.xerox.com/investor.

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and/or other countries.

Contact:

Media:
Buck Consultants, A Xerox Company
Ed Gadowski, +1-910-253-9816
Edward.Gadowski@buckconsultants.com
or
Nicole Pavlas, +1-585-697-2620
Text 100 for Buck Consultants
nicole.pavlas@text100.com