Survey Says Pay Increases to Be Smaller in ’86

Because of the continued low rate of inflation, many Southern California businesses will award smaller pay increases next year than they did in 1985, a management consulting firm said Monday.

Raises for executives and managers will average 6.5% in 1986, down from 7.5% this year, according to a survey of 40 Southern California companies conducted by the Hay Group at its annual Hay Compensation Conference. The conference was held Monday in Los Angeles, one of 14 areas nationally in which Hay conducts a survey and holds a conference.

“Sustained low inflation has made it possible for employers to keep increases relatively low while still giving many a chance to see their pay grow faster than the consumer price index,” Jerrold Bratkovich, general manager of Hay’s Los Angeles office, said in a statement. Bratkovich wasn’t available for further comment.

Conference participants predicted that their professional and technical employees will receive an average salary increase of 6% next year, compared to 6.8% this year.

Salaried employees such as administrative and clerical personnel will receive an average pay hike of 5.4%, down from 6.3% this year. Hourly employees will be given a 5.3% raise in 1986.