Local employers are budgeting for projected pay increases averaging 3.1 percent for 2010.

That's according to the Rochester Business Alliance's annual Rochester Area Pay Trends Survey. The survey reflects the responses of 166 member companies, representing 92,900 employees. Participating companies were both large and small businesses from a broad cross-section of industries, and included some of the area's top employers such as University of Rochester, Eastman Kodak Co., and Wegmans Food Markets.

While local projected increases are slightly lower than previous years, they are on par with national projections of 3.1 percent from a survey done by Watson Wyatt Worldwide.

The RBA survey also found that for 2009, actual raises were slightly smaller than predicted. Companies had anticipated 2009 pay increases averaging 3.5 percent. Among those companies that actually gave increases between August 2008 and July 2009, the average was 3.3 percent. However, 48 percent of the survey's respondents said their companies instituted a wage freeze or pay reductions for some or all employees in the past year.

Looking ahead to 2010, respondents are projecting increases averaging 3.1 percent, with non-manufacturing organizations budgeting for slightly lower increases than manufacturers. Also, only 39 percent of respondents are planning a wage freeze or pay reduction in the coming year, a smaller percentage than last year.

"While the past year has been financially challenging for employers and employees, this survey suggests that businesses are beginning to recover," said Sandy Parker, president and CEO of the Rochester Business Alliance. "Employers are being cautiously optimistic and planning for pay increases next year."

The Pay Trends Survey, conducted annually by the Rochester Business Alliance's Training and Business Information Services department, provides member companies with a tool for benchmarking their budgeted wage and salary adjustments against the local marketplace. It is one of many annual wage, benefits, and human resource practice surveys conducted by the Rochester Business Alliance each year.