Investor Relations Disclaimer

You are about to review presentations, reports, filings and/or other materials regarding Aon plc (NYSE: AON) that contain time-sensitive information. The information contained therein is only current as of the date thereof. Aon expressly disclaims any obligation to review, update or correct these materials after the date thereof. Aon may update, amend, supplement or otherwise alter the information contained in any such materials by subsequent presentations, reports, filings, or other means without notice.

Certain statements made on this web site or in materials accessed in or through this section of our web site are “forward-looking statements,” which are subject to risks and uncertainties, and Aon's actual results may differ (possibly materially) from those indicated in such statements. See Legal Notice for further information regarding such statements and additional disclaimers with respect to the materials and sites that you may access through the Investors section of our Web site.

I Understand   |   Return Home

Buoyed by the largest projected bonuses in four decades, employees should see pay climb in 2020 according to Aon

09/11/2019
Employees at small businesses are projected to see higher salary increases and larger bonuses than midsize and large businesses

CHICAGO, Sept. 11, 2019 /PRNewswire/ -- Salaries are projected to rise in 2020, and U.S. employees should also expect to bring home more in bonuses next year, according to new data released today by Aon plc, a leading global professional services firm providing a broad range of risk, retirement and health solutions.

Aon's 2019 U.S. Salary Increase Survey of 1,216 U.S. businesses projects base pay budgets will increase by 3.2% in 2020, slightly higher than 2019's 3.1% actual lift. In addition, variable pay, such as incentive or sign-on bonuses, is expected to rise to record levels at 13.1% of payroll, the largest allocation to projected variable pay in the history of the 43-year study.

Source: Aon’s 2019-2020 U.S. Salary Increase Survey.

"These increases in salary and variable pay reinforce the commitment of businesses to invest in talent, especially top performers. This is a very positive development for employees who have seen mostly stagnant wage growth since 2011 when base pay budgets increased by 2.7% and variable pay spending was 11.6% of payroll," said Ken Abosch, an employee rewards consulting leader at Aon.

Variable pay continues to climb as businesses seek to de-risk their fixed costs by allocating more to performance-based pay. Business spending on variable pay programs in 2019 was at 12.9% of payroll and is expected to rise to 13.1% in 2020. "This is evidence that organizations want to share the benefits of strong business performance with their people but aim to do so in a way that does not add to their fixed costs," said Abosch.

The majority (90%) of businesses surveyed have a broad-based variable pay plan, which includes signing bonuses (63%), individual performance awards (53%), special recognition awards (52%) and business incentives (50%). Nearly 60% of businesses surveyed use performance ratings in determining variable payouts. These practices increase employee line of sight and therefore strengthen their focus on desired business outcomes.

Company size and geography
Workers in most U.S. cities can expect to see salary increases in line with the national average in 2020. However, cities with higher living costs may see higher increases, such as San Diego (3.9%) and San Francisco (3.8%). Additionally, some states may see higher-than-average increases in variable pay expenditures. Specifically, Texas is projected to see 17.8% of payroll allocated to variable pay, while the national average is 13.1%. In contrast, California falls short of reaching the national average with projected variable pay allocations at 12.8%, which is up from 12.2% in 2019. 

Small business employees will see a greater increase in both base and variable pay compared to large businesses in 2020.   

  • For businesses under $50 million in revenue:
    • Base pay budgets are projected to grow by 3.5%; and
    • Variable pay is projected to account for 16.8% of payroll in 2020, up from 14.4% in 2019
  • For businesses with fewer than 500 employees:
    • Base pay budgets are projected to grow by 3.3%; and
    • Variable pay is projected to account for 13.8% of payroll in 2020, up from 12.9% in 2019

For more information about Aon's Salary Increase Survey results, visit Aon's Rewards Solutions website here.

About Aon
Aon plc (NYSE: AON) Aon is a leading global professional services firm providing a broad range of risk, retirement and health solutions. Our 50,000 colleagues in 120 countries empower results for clients by using proprietary data and analytics to deliver insights that reduce volatility and improve performance.

Follow Aon on Twitter and LinkedIn
Stay up to date by visiting the Aon Newsroom and hear from our expert advisors in The One Brief.
Sign up for News Alerts here

Media Contacts:

Nadine Youssef, +1.312.381.2329 or nadine.youssef@aon.com

Sadie Schwarm, +1.217.502.4521 or sadie.schwarm@kemperlesnik.com

 

Aon plc (http://www.aon.com) is a leading global provider of risk management, insurance brokerage and reinsurance brokerage, and human resources solutions and outsourcing services. Through its more than 72,000 colleagues worldwide, Aon unites to empower results for clients in over 120 countries via innovative risk and people solutions. For further information on our capabilities and to learn how we empower results for clients, please visit: http://aon.mediaroom.com. (PRNewsfoto/Aon Corporation)

Cision View original content to download multimedia:http://www.prnewswire.com/news-releases/buoyed-by-the-largest-projected-bonuses-in-four-decades-employees-should-see-pay-climb-in-2020-according-to-aon-300916079.html

SOURCE Aon plc

Stock Quote: NYSE

Price 192.93

Change +0.64

Volume 513,688

% Change +0.33%

Intraday High 192.95

52 Week High 198.61

Intraday Low 190.38

52 Week Low 135.30

Today's Open 191.66

Previous Close 192.29

Oct 16, 2019 04:02 PM Pricing delayed 20 minutes
Latest Annual Report

Email Alerts

Email Address *
Mailing Lists *





 
Enter the code shown above.

Contact Information

200 East Randolph
Chicago, IL 60601
Phone: (312) 381-3310

Email