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An article from
Dive Brief


PAYSCALE: MOST COMPANIES PLAN 3.8% EMPLOYEE RAISES FOR 2024

The new normal in compensation increases could be 3.5%-4%, a WTW pay strategist
said.

Published July 27, 2023
Ginger Christ Reporter
 * 
 * 
 * 
 * 
 * 


Getty Images via Getty Images
Listen to the article 2 min
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DIVE BRIEF:

 * More than three-fourths of U.S. companies plan to increase salaries the same
   as or more than this year, according to the results of a salary budget survey
   by Payscale, a compensation data provider. Pay is expected to rise 3.8%,
   compared to 4% in 2023, according to the Wednesday results.
 * However, 22% of companies intend to cut the amount they’re dedicating to
   salary increases next year, up from 9% in 2023, as the labor market cools,
   the survey found.
 * “Although employers may want to bring salary budgets down after recent wage
   growth, it is still very much an employees’ labor market with skills
   shortages persisting in some sectors,” Ruth Thomas, pay equity strategist at
   Payscale, said in a news release. “When it comes to pay increases, the last
   few years have indicated that the new normal may be in the 3.5-4% range, but
   that could change if we go into a recession.





DIVE INSIGHT:

A June report by business consulting firm WTW similarly predicted average salary
increases of 4% in 2024. Those increases remain “well above” those seen over the
past decade, as employers try to remain competitive, a WTW researcher said in a
statement. 

In addition to upping pay, employers have turned an eye to benefits packages to
attract and retain talent. Some are offering free tuition, while others are
subsidizing child care. 

The Society for Human Resource Management’s 2023 Employee Benefits Survey found
that 33% of companies provided workers with paid leave to care for immediate
family members. Employers offering other forms of leave also increased, SHRM
found, with paid adoption leave up 6 percentage points from the previous year to
34% and paid child foster child leave climbing 3 percentage points to 25%.

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 * Ginger Christ
   
   SHRM23
   
   
   4 TIPS TO PREPARE FOR PAY TRANSPARENCY
   
   Pay transparency is an ongoing process, a global compensation leader said.
   
   By Ginger Christ • June 13, 2023
 * Explore the Trendline➔
   PeopleImages via Getty Images
   Trendline
   
   
   TOP TRENDS IN COMPENSATION
   
   As employees retain the upper hand in the labor market, pay equity and pay
   transparency have taken center stage.
   
   By HR Dive staff


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Editors' picks

 * Ginger Christ
   
   SHRM23
   
   
   4 TIPS TO PREPARE FOR PAY TRANSPARENCY
   
   Pay transparency is an ongoing process, a global compensation leader said.
   
   By Ginger Christ • June 13, 2023
 * Explore the Trendline➔
   PeopleImages via Getty Images
   Trendline
   
   
   TOP TRENDS IN COMPENSATION
   
   As employees retain the upper hand in the labor market, pay equity and pay
   transparency have taken center stage.
   
   By HR Dive staff

Latest in Comp & Benefits
 * Payscale: Most companies plan 3.8% employee raises for 2024
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