A recent survey of corporate America shows that base salary budgets for 2025 are expected to rise at nearly the fastest rate in two decades. These salary budgets serve as a useful indicator of the average annual raise employees might expect. 

The National Center for Construction Education and Research (NCCER) published its 2024 report, highlighting the impressive earning potential for skilled craft professionals. The survey gathered data from 183 organizations, representing nearly 323,000 workers across the industrial, commercial, and residential construction sectors in the U.S. 

The survey reveals that average annual salaries range from $60.000 to over $100,000. Leading the pack are general foremen and instrumentation technicians, with average salaries of close to a $100k. These figures represent average annual earnings for specific craft roles and do not include overtime, per diem, or other common industry incentives. 

“Even with a slower hiring pace and a slight rise in unemployment, high wages are anticipated to persist into 2025,” noted Dana M. Peterson, Chief Economist at The Conference Board. “The shrinking labor supply is prompting businesses to focus on retaining their current staff, which leads to sustained salary increases and improved real wage growth as inflation stabilizes.” 

Diana Scott, US Human Capital Center Leader at The Conference Board, emphasized, “To stay competitive and adaptable to market changes, employers are revising their compensation strategies. With fluctuating market conditions, there is a growing trend towards performance-based and strategic compensation initiatives that are not tied to base pay.” 

Drawing Inferences 

The report draws on data from 300 compensation leaders and highlights key findings about businesses’ annual base pay increase budgets: 

  • Sector Variations: 
  • Highest Increases: Insurance, energy/agriculture, and communications sectors are reporting the highest planned overall salary increases. 
  • Largest Incremental Increases: Communications, diversified services, energy/agriculture, and trade sectors are planning the largest incremental increases compared to 2024. 
  • Lowest Increases: Trade and diversified services sectors have the lowest planned increases. Consulting services and utilities are projecting modest declines in their salary increases for 2025. 
  • Sign-on and Retention Bonuses: While many companies will continue offering these bonuses due to a tight labor market, there is a growing trend to reduce reliance on them. About 5% more organizations plan to eliminate retention bonuses in 2025 than those introducing them, and 3% more plan to stop offering sign-on bonuses. 
  • Recognition and Equity Compensation: Plans for 2025 indicate nearly 14% growth in companies using recognition programs and a 6% increase in equity compensation. This reflects a shift towards performance-based and flexible compensation strategies. 
  • Increased Base Pay Actions: Organizations plan to use their salary budgets more for promotions (39%), responding to external market pressures (32%), raising salaries to the minimum of ranges (20%), adjusting role responsibilities (18%), critical roles (12%), and key contributors (7%). 
  • Pay Equity: Pay equity remains a focus, driven by legal and transparency requirements. Although 90% of organizations do not allocate a separate budget for pay equity, over half will fund it through their merit and general budgets. Additionally, 30% will reallocate spending from other areas, such as attrition and delayed hiring, to support pay equity increases in 2025. 

Final Thoughts 

With average salaries ranging from $60,000 to over $100,000, the survey highlights both the financial rewards and opportunities available within this field. The prominent salaries for roles such as general foreman and instrumentation technician reflect the high demand and value of specialized skills. This data not only emphasizes the importance of experience, credentials, and certifications in shaping salary outcomes but also reinforces the construction industry’s capacity to offer competitive compensation. 

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