Employers Anticipate Employee Pay Increase

by Mike Hunter

Employers in Arizona reported they anticipate pay increases in 2013, says a study completed by Mountain States Employers Council released in early October. Arizona employers project the highest increase of the three states surveyed, with an anticipated 2.8 percent pay increase in 2013. Survey findings were collected from 580 organizations in Arizona, Colorado and Wyoming and represent a cross-section of industries, including government, manufacturing, natural resources, nonprofits, technology, financial, real estate, insurance, healthcare, retail and wholesale, service, construction and utilities.

“Our survey data indicates that employers in Arizona are looking more positively at economic conditions in 2013 and projecting continued improvements in employee pay,” says Patty Goodwin, director of surveys for Mountain States Employers Council.

Some key industries reporting higher than the state average increase include nonprofit employers who are forecasting raises of 3.4 percent in 2013. Government employers (not including utilities) are projecting a 3.1 percent increase. Tucson employers surveyed predicted an overall 2.6 percent increase, while Metro Phoenix employers projected a 2.9 percent pay increase. On the other hand, the Arizona manufacturing industry reports the lowest projected increase at 1.9 percent. Arizona’s survey results also show a higher projected increase over last year, which was 2.4 percent from 2011 to 2012.

“Mountain States Employers Council watches a number of economic and compensation indicators to assist Arizona decision-makers in planning future salary adjustments, and the surveys help provide a complete look at the local market,” says William L. Smith Jr., vice president, about MSEC services and the importance of these surveys for business owners and industry leaders.

2013 Average Employee Salary Projections in Arizona

Average Projected Increase by Industry
Industry 2013 2012
Government 3.1% 2.5%
Manufacturing 1.9% 1.4%
Nonprofit 3.4% 2.9%
Healthcare 2.9% 2.2%
Retail/Wholesaler 2.4% 1.5%
Service 2.8% 2.4%
All Organizations 2.8% 2.4%


Average Projected Increase by Location
Location 2013 2012
Metro Phoenix 2.9% 2.6%
Tucson 2.6% 2.0%
Other Arizona 2.9% 1.1%


Average Projected Increase by Position
Position 2013 2012
Hourly Production/ Maintenance 2.7% 2.2%
Clinical/Technical Non-Exempt 2.9% 2.4%
Salaried Exempt 3.1% 2.6%
Executive/Officer 2.6% 2.4%
All Positions 2.8% 2.4%


Average Projected Increase by Employment Size
Employment Size 2013 2012
Less then 50 Employees 2.8% 2.7%
50-99 Employees 3.7% 2.8%
100-249 Employees 2.8% 2.4%
250-499 Employees 2.4% 0.9%
500-999 Employees 2.5% 2.4%
1,000 or more Employees 2.8% 3.3%


2013 Salary/Wage Budget
58% of organizations surveyed indicated the 2013 budget will be about the same as the 2012 budget
6% of organizations surveyed indicated the 2013 budget will be lower than the  2012 budget
36% of organizations surveyed indicated the 2013 budget will be higher than the 2012 budget

Source: Mountain States Employers Council

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