Will Your Salary Increase in 2016?

With the new year right around the bend, now is the time to examine your budget. This includes both your income and expenses.

Can you think of anything better than a salary increase in 2016? While this may not be something every worker experiences, things are looking good for many across the globe.

The Society for Human Resource Management (SHRM), citing information collected by advisory firm Korn Ferry and its Hay Group division, said that “workers around the world are expected see “real” (inflation-adjusted) wage increases of 2.5 percent in 2016—the highest in three years.”

This does not guarantee a salary increase in the new year. However, it is a bright spot in an employment market that is still trying to regain its footing.

In the United States, inflation is expected to remain low (0.3 percent) in 2016. With an expected salary increase of 3 percent, the final result will be real income growth of 2.7 percent.

Workers in other regions, including Canada and Europe, are in good position to experience the same type of growth.

Philip Spriet, global managing director for productized services at Hay Group, added the following:

“This year’s global salary forecast shows that, for the majority of countries, real wage increases in 2016 are set to be the highest in three years. Differing macro-economic conditions means there are stark variations globally. But overall, decent pay increases, coupled with extremely low (and in some cases, zero) inflation, mean that the outlook is positive for workers.”

A positive outlook for workers is always a good thing. With the calendar ready to turn, keep your fingers crossed that a pay raise is in your future. If this happens, your budget will change as well.

What are your thoughts on earning more money in 2016? Will your company boost your pay? Are you afraid that another year will go by without an increase?