More Companies Than Expected Have Increased 2022 Salaries

PRNewswire (06/09/22)

Seven in 10 (70%) organizations implemented larger salary increases this year compared with 2021, with 21% reporting “significantly higher” levels, according to a survey by executive compensation consultancy Pearl Meyer. When polled in November 2021, companies planning to make larger increases expected an average increase of 4.2%. Actual implemented increases were even higher than anticipated at 4.8%. Of the companies reporting higher salaries in 2022, 44% said retention concerns were the primary factor for the decision, with 30% noting higher cost of living or rising inflation.

Percentage-wise, there is very little difference in the amounts granted based on employee category, from executive to nonexempt. Almost a quarter (23%) of companies are planning mid-year salary adjustments in addition to their annual cadence, and an additional 8% are considering the action.