Quiz Answer: B. 2.8%

According to a survey from Watson Wyatt Worldwide Inc. of Arlington, Va., employers plan to give merit increases in 2010 averaging 2.8%. As this shows, many employers are planning to reinstate salary increases that they have forgone the last two years. Ken Abosch, North American compensation practice leader for Hewitt, says, “We’re going to see organizations spread this paltry salary increase across the broader population to try and not disadvantage anybody because companies are feeling at risk due to the warming of the talent labor market.”  However, he recommends allocating the majority of merit raise budgets to top talent.