10/12/2023

Employers Eyeing More-modest Pay Increases Next Year

Inflation, financial also appear to be impacting merit budgeting

In 2024, U.S. employers are planning smaller pay increases in 2024 compared to this year—and organizations say increases could decline more if economic conditions worsen, new data finds.

A new survey out from consulting firm Mercer—which comes on the heels of several other compensation prediction surveys—finds that employers in the U.S. plan to raise their compensation budgets for merit increases by 3.5 percent for 2024, compared to the 3.8 percent they awarded in 2023. And they plan to raise their total salary increase budgets for nonunionized employees by 3.9 percent, compared to 4.1 percent in 2023.

Mercer surveyed more than 900 organizations in August for the results.

Please select this link to read the complete article from SHRM.