Who Will Get a Pay Raise in 2020?
By Bonnie Johnson, AgCareers.com
Can everyone expect a pay raise in 2020? Will employees receive their annual cost of living salary increase?
AgCareers.com surveyed agricultural companies in the annual Agribusiness HR Review. More than 90% said salaries increased during the last 12 months.
Nearly all U.S. agricultural employers (98%) forecast salaries are likely to increase in the next year, but not for all employees. While just over half – 52% – indicated all staff would receive increases, 46% said it would only be some staff.
Why isn’t everyone getting a raise?
Agriculture and food businesses plan to administer salary increases in larger portions to high performers; more than 90% said salary increases were performance-based.
It’s becoming increasingly common for employers to reward pay increases only to productive, high-performing employees rather than an across-the-board salary bump to all staff. Organizations find performance-based pay is a major motivator for employee achievement and business success.
Most ag employers have a structured staff performance system in place, with rewards linked to performance. These organizations report that their main objective for performance rewards is to improve overall business performance, followed closely by enhancing individual performance and retaining top employees.
Beyond the basic salary increases, the most common type of staff performance reward is a bonus, based on company and individual performance.
How does your pay measure up?
The most common way for agricultural companies to benchmark their salary data is by subscribing to an industry-specific survey. Find out more about the AgCareers.com Compensation Benchmark Review at agcareers.com/compensation-benchmark-review/CBR.html.
To explore all the ag HR trends, download your free full copy of the 2019-2020 Agribusiness HR Review at AgCareers.com.
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