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In the US, new research has revealed that employers are budgeting for 3.8 per cent pay rises next year, a slight decline from this year's average 4 per cent hike, SHRM reports.
More than three-quarters of US companies intend to increase salaries in 2024 at the same level or higher than this year, according to findings from Seattle-based compensation software firm Payscale.
Its Salary Budget Survey showed that the percentage of organisations expecting to lower their salary increase budgets in 2024 has risen to 22 per cent from 9 per cent last year. A leap that may suggest employers are less concerned about attraction and retention than they have been in recent years.
Payscale's survey comes in the wake of a report by WTW, released in late June, which reportedly predicted that employers are budgeting an average increase of 4 per cent in 2024.
WTW's Salary Budget Planning Survey polled more than 2,000 US organisations and discovered that the number is down from the actual increase of 4.4 per cent in 2023 and the 4.2 per cent increase in 2022. However, projected 2024 figures remain higher than the 3.1 per cent salary increase budget in 2021 and other pre-pandemic year increases.
Employee pay expectations have increased as a result of inflation and the tight labour market. A survey of more than 32,000 workers this spring from the ADP Research Institute found that the overwhelming majority of workers expect a bigger payday from their employers and might be prepared to leave if they don't get it.
Companies including Chobani, Home Depot, Walmart and Delta have all recently announced wage hikes for employees.
Surveys around pay predictions for 2024 offer valuable insight for HR leaders planning compensation strategies but analysts say the forecasts are only that; a forecast.
"This is a bit like looking into a crystal ball, as it is only July and we are talking about budgets for 2024," Lesli Jennings - North America leader of work, rewards and careers at WTW - said.
The spanner in the works for 2024 salary predictions is a potential recession, which some analysts have been forewarning for some time.
"When it comes to pay increases, the last few years have indicated that the new normal may be in the 3.5 per cent to 4 per cent range, but that could change if we go into a recession," Ruth Thomas - pay equity strategist at Payscale - said.
Ms Thomas added that, in addition to salary budget reports, "organizations will need to keep an eye on wage growth trends and continue to invest in up-to-date market data to remain competitive and ensure that pay is fair."
Source: SHRM
(Links and quotes via original reporting)
In the US, new research has revealed that employers are budgeting for 3.8 per cent pay rises next year, a slight decline from this year's average 4 per cent hike, SHRM reports.
More than three-quarters of US companies intend to increase salaries in 2024 at the same level or higher than this year, according to findings from Seattle-based compensation software firm Payscale.
Its Salary Budget Survey showed that the percentage of organisations expecting to lower their salary increase budgets in 2024 has risen to 22 per cent from 9 per cent last year. A leap that may suggest employers are less concerned about attraction and retention than they have been in recent years.
Payscale's survey comes in the wake of a report by WTW, released in late June, which reportedly predicted that employers are budgeting an average increase of 4 per cent in 2024.
WTW's Salary Budget Planning Survey polled more than 2,000 US organisations and discovered that the number is down from the actual increase of 4.4 per cent in 2023 and the 4.2 per cent increase in 2022. However, projected 2024 figures remain higher than the 3.1 per cent salary increase budget in 2021 and other pre-pandemic year increases.
Employee pay expectations have increased as a result of inflation and the tight labour market. A survey of more than 32,000 workers this spring from the ADP Research Institute found that the overwhelming majority of workers expect a bigger payday from their employers and might be prepared to leave if they don't get it.
Companies including Chobani, Home Depot, Walmart and Delta have all recently announced wage hikes for employees.
Surveys around pay predictions for 2024 offer valuable insight for HR leaders planning compensation strategies but analysts say the forecasts are only that; a forecast.
"This is a bit like looking into a crystal ball, as it is only July and we are talking about budgets for 2024," Lesli Jennings - North America leader of work, rewards and careers at WTW - said.
The spanner in the works for 2024 salary predictions is a potential recession, which some analysts have been forewarning for some time.
"When it comes to pay increases, the last few years have indicated that the new normal may be in the 3.5 per cent to 4 per cent range, but that could change if we go into a recession," Ruth Thomas - pay equity strategist at Payscale - said.
Ms Thomas added that, in addition to salary budget reports, "organizations will need to keep an eye on wage growth trends and continue to invest in up-to-date market data to remain competitive and ensure that pay is fair."
Source: SHRM
(Links and quotes via original reporting)