There’s good news and there’s bad news. The good news: companies are slated to increase compensation in the new year. The bad news: not everyone will receive a pay increase.
According to a survey by workplace consultant Willis Towers Watson, employers are planning to raise salaries by an average of 4.6 percent in 2023. Fueled by a shortage of top talent and inflation, 2023’s pay raise estimate is the largest overall increase in 15 years.
We checked in with our LinkedIn audience to get a pulse on their compensation expectations for 2023.
According to our poll of more than 1,400 respondents, 58 percent of workers anticipate a salary increase in 2023 while 38 percent do not expect any pay raise during this time. Four percent responded with “not applicable” or “other.”
We looked at the comments section for additional insights and found some respondents citing pay increases as the key to talent retention.
“Since Covid and inflation, those making the same salary for the last few years need a salary adjustment and raise. Both are very necessary to keep employees committed to your brand,” Regional Sales Manager Brandi M. commented.
Another audience member shared a similar response: “Increases to salary for inflation should be required for companies that do not want to deal with retention issues. You need to maintain market value compensation or the employees should look elsewhere.”
One respondent never received a pay raise higher than the inflation rate throughout the seven years he worked for four different employers. For those looking for a pay raise, he suggested changing employers.
It’s no secret that when it comes to retaining tomorrow’s talent, compensation matters.
Employees should also stay informed about wage and salary trends in order to benefit from today’s competitive job market.
In turn, employers should keep an eye on the job market and inflation rate when making decisions about salary increases, as these factors can drastically affect their business’s bottom line. With appropriate planning and foresight, businesses can ensure that they remain competitive while equitably rewarding their hardworking staff.
Where employees feel valued and fairly compensated, businesses thrive.
For more on salary trends, check out our market insight reports.