Extract from IDS Executive Compensation Review 322

Management pay prospects 2008

With most salary reviews for managers and professionals taking place during the first four months of the year, HR practitioners are gearing up for the start of a busy pay round. To help those involved in planning pay budgets this article looks at the past pay trends, and identifies the prospects for the coming year.

Using a variety of sources, including our own data on pay movements over the last year, this article provides an economic background as well as providing information on actual pay increases for the last two years. Forecasted rates for 2008 are broken down by private and public sectors and type of review, and management pay award trends are discussed with tables providing a breakdown of average pay awards by management group and industry sector. Finally, we look at the role bonuses play in management reward.