California salary increases to be at eight-year high: survey
The Employers Group's "Year 2001 Budget Survey," which queried a diverse group of 456 California companies during their annual budget preparations, reveals that 97 percent of California employers will give increases, with 35.4 percent projecting salary increases that are higher than last year.
Among those companies increasing their budgets, the average non-executive merit increase in 2001 will be 4.72 percent-the largest average percent climb since 1992. Total salary increases, including cost-of-living raises, bonuses, and lump-sum payments for non-executive personnel, will average 5.21 percent, a 0.41 percent gain from the 4.80 percent projected in 2000.
The survey also noted that engineering, information technology, and technical personnel will continue to be in high demand across the state in 2001.
Differences between Southern and Northern California
The survey noted a contrast between San Francisco Bay Area and Southern California firms. It showed that companies in the San Francisco Bay Area are planning merit budget increases that are significantly higher than any other major metro area in California.
Projected non-executive merit increases by firms in the San Francisco Bay Area will range between 5.86 and 6.69 percent versus 4.48 to 4.75 percent in Los Angeles areas. The Bay Area is also expecting a workforce increase greater than Southern California among hourly workers-13.8 percent of firms are forecasting significant workforce increases of production, service, and maintenance employees, versus only 9 percent of firms in Southern California.
The survey also found variations between Northern and Southern California companies in layoff and turnover anticipations. "No firms in the San Francisco Bay Area reported layoff plans for 2001, although 3.5 percent of firms in Southern California are planning layoffs for 2001," noted Juan Garcia, Employers Group's research director.
"This may reflect a higher employee mobility," Garcia said. In a 12-month period ending September 2000, San Francisco Bay Area firms experienced a 21.4 percent turnover rate, compared to 13.9 percent in Los Angeles, 14 percent in San Diego, and 15 percent in the Inland Empire and Orange County.
The Employers Group survey also provides information on anticipated increases in sales, outlooks for the U.S. economy, and changes in benefits. It includes all industry sectors and sizes of companies throughout California. More information about the survey is available at the Employers Group Web site at www.employersgroup.com or by calling 213/765-3957.