Employees in the healthcare industry may expect a pay increase of 2.6 percent during 2011, up from 2010 levels but actually lower than forecasts for all industries, according to a new survey by the Hay Group.
According to the Hay survey, the base pay of healthcare employees in the U.S. rose 2.3 percent in 2010, meaning this year's expected bump is slightly higher. However, Philadelphia-based Hay forecasts a 2.8 percent pay increase for all industries this year.
"The healthcare industry did not see salary budgets fall until 2009, while other industries felt the effects of the recession much sooner, lowering salary budgets as early as 2007," said Ron Seifert, vice president and executive compensation practice leader for Hay Group's healthcare practice. "So, while healthcare is still 0.2 percent behind other industries, it seems to be rebounding at a faster pace after taking a deeper dip in a much shorter timeframe."
Pay freezes are also appearing to thaw with the economic rebound. Just 8 percent of healthcare executives say they expect their pay to be frozen in 2011, vs. 20 percent in 2010.
Hay surveyed 486 organizations for its overall compensation review, and 90 healthcare organizations. The polling took place in November 2010.
For more:
- read the Hay Group press release