PAY RAISES

Pay increases will remain ahed of inflation next year, giving employees a real gain in earnings, according to the Conference Board’s annual salary survey. Increases are expected to average 5% in both 1991 and 1992, while inflation is projected at 4.7% in 1991 and 3.8% in 1992. The Conference Board, a worldwide business network of companies and senior executives, surveyed 537 private-sector companies in a variety of major industries. 1992 Estimated Salary Increases in All Industries

Number of Companies Median Low High Non-exempt (hourly employees) 369 5.0% 4.5% 5.2% Exempt (salaried employees) 374 5.0% 5.0% 5.5% Executive 352 5.0% 5.0% 5.9%

76% of the firms surveyed have some kind of variable pay program. Percent of companies, by type of program Special award (cash award based on special performance): 43% Profit sharing: 34% Incentive and based on individual performance targets: 34% Recognition program: 31% Lump-sum merit award (one-time award): 26% Companywide bonus: 20% Grants of restricted stock or stock options: 18% Small group or term incentive: 16% Gain sharing (employees share in the value of productivity): 13% Pay for knowledge (skill-based pay): 10% Two-tier pay (new hires paid at a lower rate: 3% Source: The Conference Board, compiled by Times Researcher Melanie Pickett