2010 Salary Budgets

It is that time of year when many of you are doing 2010 budgets and trying to determine during these crazy economic times what the right merit increase budget might be for 2010. The following are some questions to consider before making a final decision on 2010 salary budgets:

1. What are your company sales and  profits projected to look like at the end of 2010?
2. What type of expenses must your company invest in to keep up with your normal business operations?
3. What are your current staffing levels, to high, to low, not enough?
4. What type of operating expenses can be eliminated in 2010, i.e. advertising, consultants, travel, etc?
5. What type of percentage increases did you receive in your benefit programs?
6. Are your current base salaries competitive?
7. Should we have a merit pay system or cost of living pay system?
8. Will our incentive plans have a resonable payout to our employees?
9. Are we losing our good people?
10. Do we have a problem hiring good people?

There are alot more questions that could be listed but it really comes down to what can you afford. Be sure to collect background information on what is being done in your industry, size company, or geography and this can be found by doing searches on the web.

In closing, you need to make the decision on your 2010 merit budget that is right for you.

Jim Geier
President and Founder
Human Capital Consulting Partners