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According to a report from Bloomberg, companies are scaling back their budgets for merit raises in the upcoming year, which may come as a surprise to employees who have experienced two consecutive years of salary increases.
In a survey conducted by Aon Plc, which gathers compensation data from over 5,500 employers in the United States, it was found that merit raises are expected to average around 3.7% across all industries next year. This marks a slight decrease from the 3.9% increase seen this year, as companies tighten their labor budgets and inflation begins to recede from the high levels of the previous year.
A separate survey conducted by workplace consultant Mercer also indicates a similar trend, with merit-based salary increases projected to be at 3.5% for the next year, down from 3.9% in 2023.
If you are a business looking to retain employees by adopting creative compensation schemes, the attorneys at Outside Legal Counsel can help. Reach out to us for a consultation.
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