Michigan Businesses And Raise Decisions

Among the employment-related decisions that come before Michigan small businesses are decisions on what to do in regards to raises for employees. One of the more common types of raises employers offer are merit raises.

What are employers in Michigan expecting the merit raise situation to be for them in the next year? A recent survey indicates that they, by and large, think it’s going to be similar to what it’s been this year and other recent years.

The survey was done by the American Society of Employers. The survey polled 231 employers. These polled employers are members of the society. One of the things the employers were asked about is how much of a merit raise they were expecting to offer their workers next year. The average answer given was a 3 percent raise.

This would put 2017 at more or less the same level as what the average merit raise has been in the past several years here in Michigan.

Other research indicates that relatively unchanging merit raise levels have not just been a recent Michigan trend, but a recent national trend. Trends in overall compensation practices may be contributing to this merit raise flatness.

There are numerous reasons why it can be key for employers to exercise care when deciding what to do when it comes to worker raises. For one, what sorts of raises a business offers can have major implications for employer-employee relations and employee morale.

Also, it is possible for an employer to face legal problems in relation to raises. For example, if an employer treats some of its workers differently from others when it comes to raises, and is accused of giving this different treatment for an impermissible reason (such as a worker’s gender, race or religion), it could face a discrimination claim.

When an employer is accused of discriminatory actions or other improper practices in relation to its conduct on raises, experienced business attorneys can help it with understanding the implications the allegations could have and advise it on how it may want to proceed.

Source: Crain’s Detroit Business, "ASE survey: Michigan employers expect average merit raise of 3% in 2017,” Lindasy Vanhulle, Sept. 5, 2016

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