1986 Pay Hikes Will Be Close to ‘85--Survey

Uncertain about the future direction of the economy but expecting inflation to be little changed, American corporations are planning 1986 pay increases at levels about the same as this year or slightly less, according to a survey released Monday.

Increases for executives will average 6.3% next year, while middle management and professionals will average 6.1%. Non-union office and clerical workers will average 6%, said officials of A. S. Hansen, a compensation and benefits consulting firm based in Deerfield, Ill.

Vice President John D. McMillan said the figures were based on a preliminary study of a survey of 2,500 companies. He said final results could produce percentages slightly under those cited in Monday’s report.

McMillan speculated that 1986 salary plans had been affected by the concern of corporate budget planners over the impact on future profits of deregulation, the federal budget deficit, tax reform and the flood of imports.

In a related area, he said, the fringe benefits that companies are planning are tending toward “low-cost or no-cost benefits.”

For example, McMillan said, 12% of the companies surveyed planned “flexible compensation programs,” under which employees choose from a selection of options “instead of piling benefit on benefit.” In 1983, 7% offered such programs, he said.

Tax-free savings plans are another low-cost benefit growing in popularity, with 56% of the companies offering the plans versus 18% in 1983, he said.