The average merit raise last year among Florida companies was 3.8%, according to a survey by Effective Resources and the HR Florida State Council. As it becomes prohibitively expensive to increase benefits, small companies are offering bigger raises to attract and keep employees.

Employee turnover in Florida companies fell to 2.3% last year from 4.6% in 2004. Hospitality had the highest turnover at 4.2% followed by retail at 3.6%.