---
title: "What do 2016 Merit Increases Look Like? Survey says…"
description: "Newly released results from World at Work 2015-2016 Salary Budget Survey says that employers are using market-based increases. Salary Budgets will rise 3.1% for 2016 according to the World at Work sur..."
url: https://www.dashrconsulting.com/what-do-2016-merit-increases-look-like-survey-says/
date: 2015-09-28
modified: 2016-01-12
author: "Dr. Di Ann Sanchez"
image: https://www.dashrconsulting.com/wp-content/uploads/Total-U.S.-Salary-Budget-Increases1.png
categories: ["Human Resources", "Talent Management"]
type: post
lang: en
---

# What do 2016 Merit Increases Look Like? Survey says…

Newly released results from World at Work 2015-2016 Salary Budget Survey says that employers are using market-based increases. Salary Budgets will rise 3.1% for 2016 according to the World at Work survey.

![Total U.S. Salary Budget Increases](https://www.dashrconsulting.com/wp-content/uploads/Total-U.S.-Salary-Budget-Increases1.png)

The survey shows employers continue to differentiate pay increases based on performance.

![2015SalaryMeritINcreasesAwarded](https://www.dashrconsulting.com/wp-content/uploads/2015SalaryMeritINcreasesAwarded.png)

The survey also reviewed adjustments to salary structures by employee category.

![Salary Structure Increases, by Employee Category](https://www.dashrconsulting.com/wp-content/uploads/Salary-Structure-Increases-by-Employee-Category.png)

Incentive pay programs are usually budgeted separately from salary increases. The average amount budgeted for variable pay is a percentage of the total base salaries in that category. Non-cash recognition and rewards were one of the few variable pay categories showing a decline from 2014 to 2015, slipping from being offered by 51 percent of employers down to 49 percent. Spot bonuses in lieu of merit increases is on the rise.

![Variable Pay Program Budgets, 2015 and 2016](https://www.dashrconsulting.com/wp-content/uploads/Variable-Pay-Program-Budgets-2015-and-2016.png)

###### Reference: (Miller, S.). Modest Gains Seen for 2016 Variable Pay Budgets, Salary Ranges. SHRM.org