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Insurance industry

Salaried Workers in Chicago Area to Receive 4.5% Average Raise in 2001

Strategic Insights

— 1 min read

As the economy continues to grow and the labor market remains tight, Chicago-area salaried workers are in line for an average 4.5% raise in 2001, an increase from 4.4% last year. Local executives, including CEOs and those who report directly to them, will fare better, garnering average salary raises of 4.6%, up from 4.4% this year. The tightening labor market and increasing talent shortage are driving companies to pay more to attract and retain top managers.

Key Takeaways:

  • The average salary raise for Chicago-area salaried workers is projected to be 4.5% in 2001, a 0.1% increase from 4.4% last year.
  • Local executives, including CEOs and those who report directly to them, will receive average salary raises of 4.6%, up from 4.4% this year.
  • The increasing talent shortage is driving companies to pay more to attract and retain top managers, with 78% of companies offering variable-pay plans, up from 70% last year and 47% in 1990.
  • Companies such as United Stationers, Stepan Co., and Elkay Manufacturing Co. are using variable-pay plans, including stock options, bonuses, and goal-based incentives, to attract and retain employees.
  • The survey was conducted by Hewitt Associates LLC, a management consultancy, and polled 856 companies nationwide, including 40 in the Chicago area.

Statistics:

  • 4.5%: average salary raise for Chicago-area salaried workers in 2001
  • 4.6%: average salary raise for local executives, including CEOs and those who report directly to them, in 2001
  • 4.4%: average salary raise for Chicago-area salaried workers last year
  • 2001: projected year of increasing raises for salaried workers, following 4.2% hikes in 1998 and 1999
  • 78%: percentage of companies offering variable-pay plans, up from 70% last year and 47% in 1990
  • 40: number of companies in the Chicago area polled by Hewitt Associates LLC
  • 856: total number of companies polled by Hewitt Associates LLC nationwide

Sources:

  • Lincolnshire-based management consultancy Hewitt Associates LLC
  • Northern Trust Co. economist Robert Dieli
  • Des Plaines-based United Stationers Inc.
  • Stepan Co. director of employee performance, staffing, and benefits Michael Gumkowski
  • Elkay Manufacturing Co. director of compensation and benefits Wayne Gregersen
  • Lake Forest-based Trustmark Insurance Co. vice-president of human resources Robert Worobow

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