Most individuals with jobs are looking to get paid more in order to help balance their financial strategies and prepare for what the future brings. This can be important, as there is an ability to build a nest egg, prepare for a family and simply improve budgeting from week to week. Many consumers may see a boost in these situations, especially in the next year.
Salary levels could rise 3 percent on average next year, according to a report from Aon Hewitt. This would be an improvement from this year’s gain of 2.9 percent, and mark the highest level recorded since 2008.
Workers who performed the best experienced increases of nearly 5 percent this year, the report noted. This was close to double the level recorded for those who did the expected level of work. Those who did not perform well earned less than 1 percent more.
“We’ve seen a dramatic shift in the mix of compensation over the past decade, with variable pay assuming the largest component of compensation growth,” said Ken Abosch, compensation, strategy and market development leader for Aon Hewitt. “Performance-based awards are attractive to employers because they tie employee compensation to business results and help give them more control over their costs. There is also a tremendous upside for employees – particularly those who are high-performing workers – because they have the opportunity to be rewarded for exceeding their goals.”
Retirement savings important for many women
With the potential for a higher level of pay in the next year, more individuals may be looking to improve savings levels, especially when it comes to retirement. This could be a major issue for some, but one gender may be performing notably well.
According to a report from the Credit Union National Association, more than 45 percent of women currently take advantage of a 401(k) policy, while nearly 36 percent use a pension plan.
Even with their proactive attitude toward retirement, some women were more cautious about getting a solid financial strategy in order. The report explained that more than half of those polled felt they were not completely sure of themselves when it came to finances. For young people, this was the case to an even more significant level, as nearly 60 percent noted this issue.