US pay raises to remain high in 2024, WTW survey finds
07 Dezembro 2023 - 12:21PM
U.S. employers are planning an overall average salary increase of
4.0% for 2024. That’s according to the latest Salary Budget
Planning Survey by WTW (NASDAQ: WTW), a leading global advisory,
broking and solutions company. Though down from the actual average
increase of 4.4% in 2023, the numbers remain well above the 3.1%
salary increase budget in 2021 and years prior.
Inflationary pressures (55%) and concerns over a tight labor
market (52%) are the primary influencing factors behind salary
increase budgets, both cited by over half of employers
surveyed.
Yet, inflation is slowing down from the highs of recent years,
and the labor market is shifting, with voluntary turnover and
attrition at 11% overall. While still a common concern, fewer
organizations are reporting issues with attraction and retention,
down from 60% in 2022 to 48% currently.
“We are seeing healthy salary increases forecasted for 2024,”
said Hatti Johannsson, research director, Reward, Data and
Intelligence, WTW. “Though economic uncertainty looms, employers
are looking to remain competitive for talent, and pay is a key
factor. At the same time, organizations should remember pay levels
are difficult to reduce if markets deteriorate. It’s best to avoid
basing decisions that will have long-term implications on their
organization on temporary economic conditions.”
Still, employers seek to strike a healthy balance within their
total rewards packages. Non-monetary actions are a big focus for
employers looking to attract and retain. At most organizations,
these include more workplace flexibility (63%); broader emphasis on
diversity, equity and inclusion (60%); and improving the employee
experience (55%). Additionally, most employers have committed to
hiring staff in a higher salary range (55%), undertaking
compensation reviews of specific employee groups (54%) and raising
starting salary ranges (49%), which could also be seen as a
reflection of the increased emphasis on pay transparency.
Organizations also report moving toward greater work
flexibility, as over half (55%) of employers offer a choice of
remote, onsite or hybrid working, while 31% offer a flexible work
schedule. As this trend grows, some companies are changing rewards
in line with remote working: 13% of employers have taken action or
are planning to change allowances, 10% of employers have or are
planning to change benefits, and 11% have or are planning to adjust
base pay.
“With ongoing uncertainty, especially around pay transparency,
we see organizations do better where there is a foundational level
of understanding among all employees – on the compensation
philosophy, the program design and how decisions about pay are
made. Compensation is a sensitive topic and often managers feel
uneasy when it comes to talking about pay. Our research shows the
most commonly cited barrier to organizations communicating more
openly about pay is the fear of employee reactions. We recommend
training for managers on their role, how the compensation program
works, and how to communicate it effectively. Improving the pay
conversation goes a long way in improving the overall employee
experience and further stabilizing the workforce,” said Sara
Vallas, senior director, Employee Experience, WTW.
About the survey
The Salary Budget Planning Report is compiled by WTW’s Reward
Data Intelligence practice. The survey was conducted in December
2023. Over 33,000 responses were received from companies covering
over 150 countries worldwide.
About WTW
At WTW (NASDAQ: WTW), we provide data-driven, insight-led
solutions in the areas of people, risk and capital. Leveraging the
global view and local expertise of our colleagues serving 140
countries and markets, we help organizations sharpen their
strategy, enhance organizational resilience, motivate their
workforce and maximize performance.
Working shoulder to shoulder with our clients, we uncover
opportunities for sustainable success—and provide perspective that
moves you. Learn more at wtwco.com.
Media contacts:
Ileana Feoli: +1 212 309 5504Ileana.feoli@wtwco.com
Stacy BronsteinStacy.bronstein@wtwco.com
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