Inflation, Labor Market Drive Merit Pay Increases for 2024

By Michael J. O'Brien

Inflationary pressures and concerns about a tight labor market continue to cloud the horizon as a trio of surveys point the way forward on 2024 compensation plans.

U.S. employers forecast raising their merit increase budgets by 3.5% and total salary increase budgets by 3.8% on average for 2024, according to Mercer's U.S. Compensation Planning Survey November 2023 edition.

WorldatWork’s “2023-24 Salary Budget Survey” of 2,146 participating organizations found U.S. employers are projecting 4.1% pay increase budgets in 2024 and 3.6% merit increases on average.

Meanwhile, employers are planning an overall average salary increase of…

Complete the form to finish reading this article.

Continue to Full Article

With our comprehensive Total Rewards Model guide: 

You'll learn how to align your Total Rewards strategy with your organization's goals, human capital strategy, and HR strategy. 
Explore the five crucial elements of a Total Rewards strategy: compensation, benefits, well-being, careers, and recognition. 
Unlock the creative and analytical process behind leveraging and combining them effectively. 
Gain insights into designing the right reward programs at the right time to inspire and acknowledge exceptional contributions.