Don’t Expect the Same Raise You Got Last Year
Several compensation surveys show employers are budgeting for smaller merit raises in 2024 as firms slow hiring and tighten their belts
Employees should brace for smaller pay increases as hiring slows, new studies show.
Photographer: Michael Nagle/BloombergCompanies are trimming their budgets for merit raises next year, a sign of belt-tightening that could surprise some employees who had enjoyed two straight years of increases.
US employers surveyed by Aon Plc, which compiles compensation data on more than 5,500 employers, said merit raises will average about 3.7% across all industries next year, down from 3.9% this year, as companies rein in labor budgets and inflation eases from last year’s highs. A separate survey from workplace consultant Mercer found a similar trend, with merit-based salaries seen rising 3.5% next year, down from 3.9% in 2023.