Employees can expect median pay increases of 3 percent in 2012, according to research by Hay Group, a pay consultancy. These increases are consistent with predicted base salary increases for 2011 that were reported in June 2010.

While the forecasted increases remain steady, they are still lower than the 4 percent increases seen from 2005 to 2008.

Furthermore, after factoring in annualized consumer price index growth at 3.6 percent, the resulting pay movement for 2012 is a net loss of 0.6 percentage points, Hay Group reports.

According to Hay Group’s research, 3 percent pay increases are being reported for executives, middle management, supervisory and clerical positions. And this picture is relatively consistent across most industry sectors.

“The current economic environment is causing organizations to balance the cost of reward programs and relatively low base salary increases with the need to attract, retain and engage the talent they need to run their businesses,” said Tom McMullen, Hay Group’s North American reward practice leader. “Differentiating rewards—ensuring that top performers receive compensation that is substantially greater than average performers—is a continued focus area for organizations.”

“In addition to ensuring that compensation amounts are differentiated, the best performing organizations emphasize and take care in managing the pallet of ‘total rewards’ for their employees, including clear career development opportunities, meaningful job designs, nonfinancial recognition and energizing work climates,” added McMullen.

Hay Group’s forecast results are based on data provided by U.S. organizations from March through June 2011. Typical respondents include compensation professionals in the HR departments of small to large size U.S. organizations across a range of industries.