(Wall Street Journal) — While U.S. companies have slowed down hiring this year, some even announcing layoffs, some are raising salaries. Spartan Motors Inc. reinstated raises in January, after a yearlong freeze. Chief Executive John Sztykiel says employees at the Charlotte, Mich.-based specialty vehicle manufacturer received merit increases up to 3%, but he and two other top executives have voluntarily given up raises for the year. ”The reality is you not only want to retain your people, you want to motivate them as the cost of living continues to go up,” says Mr. Sztykiel. According to two surveys, one released last week by Mercer, a human resources consultancy firm, and one in June from Hay Group, a compensation consultancy firm, the average raise will be 3% next year, slightly higher than previous years but less than the current 3.6% annual rate of inflation.
Raises on the Rise Again
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