According to Tribe HR’s Pay Raise Index, women received more pay raises than men during 2012, but men earned larger pay raises. TribeHR analyzed salary and workplace recognition (“kudos”) data from 20,000 employees at 2,200 small to medium-sized companies between Q1-Q3 2012, and found that, 7.4 percent of women received raises while only 6.2 percent of men received raises.
Overall, the Index reported that average salary increase for employees at small and medium-sized businesses grew by almost 11 percent between Q1 and Q3 2012. The size of the average salary raise grew from 8 percent in Q1, to 13 percent in Q2, but then dropped to 11 percent in Q3.
Peer Recognition: An Under-the-Radar Influencer
More interestingly, however, the study also examined the correlation between salary increases and employees who had received documented recognition for a job well done. It found that 85 percent of documented recognition was given by peers, and that employees who received recognition from peers were two to three times more likely to earn a pay raise.
So it’s recognition from peers rather than recognition from managers that matters most. Go figure. In any case, it has always been important to purposefully raise the visibility of your terrific contributions within the organization. But given this new information, it’s now essential. If you want a raise this year or next, it’s up to you to document as much positive feedback from your peers as possible.
How do you do this? Find out more over at Intuit's Fast Track blog.