Salary surveys tells us that base salary increases (what are often termed “cost of living” increases) are expected to average 3.86 percent for 2009 compared to 3.93 percent last year. The survey, prepared by Culpepper Compensation, a compensation consulting firm, shows significant differences in compensation increases by country. In Latin America and Asia-Pacific the increases tend to be significantly higher (Venezuela – 19.78%, Sri Lanka – 16.56%, Ukraine – 15.44%) than the U.S. and more developed countries (Switzerland – 3.47%, Japan – 3.52%).

This survey was taken in August, before the full global economic situation was known. We discussed these results with a number of law firm HR Directors and COO’s, and there was strong belief that, if a major turn-around does not occur in the U.S. economy by year end, it is likely that actual increases will be substantially lower, perhaps zero.

As a side note, it is interesting to note that the Culpepper survey also showed a continuing trend away from salary increases on the anniversary of hire date. Currently 80 percent of firms adjust salaries on a common date – the most common (25%) of respondents being January first.