Korn Ferry Survey: 71 Percent Of Executives Plan 2015 Salary Increases, 90 Percent Plan Year-End Bonus for Staff
Los Angeles, CA. October 23, 2014
-74 Percent Of Executives Expect Business To Expand in 2015 -Increased Consumer Demand No. 1 Reason Execs Would Accelerate Hiring
LOS ANGELES, October 23, 2014 — Seventy-four percent of executives say their businesses will expand in 2015, according to a survey conducted by Korn Ferry (NYSE: KFY), a single source for leadership and talent consulting services.
Anticipating this growth, 71 percent of executives plan to increase staff salaries in 2015. In addition, executives indicate that 2014 will end on a positive note, with 90 percent planning to give year-end bonuses and 36 percent expecting to increase bonuses this year (2014) versus the previous year (2013).
“Bonuses and salary increases underscore that there is a huge cost to replacing great people. Executives know this and there is incredible competition for talent,” said Nels Olson, Vice Chairman and Co-leader of Korn Ferry’s Board and CEO Services Practice. “The bottom line for most companies is in top line growth. Executives indicate that the number one reason they would increase hiring is an increase in consumer demand. In this environment, those who are driving sales and revenue are in a much stronger position to secure bigger bonuses and increases.”
From September 17 to October 20, Korn Ferry surveyed 518 executives. Results are as follows:
Q: Are you planning on 2015 salary increases for your staff/what are your plans for salaries next year?
Stable – no increase or decrease 27%
Increasing from 2014 71%
Decreasing from 2014 2%
Q: Are you planning to give year-end bonuses/what are your plans for 2014 year-end bonuses for your staff?
No bonuses 10%
Increasing from last year 36%
Decreasing from last year 15%
No change from last year 39%
Q: In 2014, compared to 2013, did base salaries for your staff increase, decrease, or remain at the same levels?
Increased in 2014 66%
Same level in 2013 as 2014 28%
Decreased in 2014 compared to 2013 6%
Q: Do you expect your business to expand or contract in 2015?
Stable – no increase or decrease 18%
Q: What “outside factor” would make you most apt to increase hiring in 2015?
Executives have responded as follows:
Increasing consumer demand worldwide 59%
EU economic stability 20%
U.S. lowering its corporate tax rate 14%
Stability in the Middle East 6%
Geopolitical stability in Russia 1%
About Korn Ferry
At Korn Ferry, we design, build, attract and ignite talent. Since our inception, clients have trusted us to help recruit world-class leadership. Today, we are a single source for leadership and talent consulting services to empower businesses and leaders to reach their goals. Our solutions range from executive recruitment and leadership development programs, to enterprise learning, succession planning and recruitment process outsourcing (RPO). Visit http://www.kornferry.com for more information on Korn Ferry, and http://www.kornferryinstitute.com for thought leadership, intellectual property and research.