Employers Anticipate 2024 Pay Raises to Remain High

WTW News Release (06/29/23)

U.S. employers are budgeting an average salary increase of 4.0% in 2024, according to a survey of 2,090 organizations by WTW. Though down from the actual increase of 4.4% in 2023, the numbers remain higher than the 3.1% salary increase budget in 2021 and years prior. More than two-thirds (70%) of U.S. employers budgeted for pay raises to be either the same or higher in 2023 than 2022. Fewer than one-quarter (14%) of companies have budgeted for pay raises to be lower than last year.

Concerns about a tighter labor market affected by worker shortages is the most commonly cited driver influencing changes in 2023, cited by 61% of respondents expecting changes in their salary budgets, followed closely by inflationary pressures (60%). More than half (51%) of organizations this year reported having difficulty with attraction or retention, compared with 57% last year. Respondents are expecting labor market pressures to ease, with only 35% expecting difficulties in 2024.

This article originally appeared on wtwco.com. Use this link to see the full article: U.S. employers anticipate 2024 pay raises to remain high as labor market challenges remain, WTW survey finds