While current pay budgets have risen to 4.2%, in 2022 more than two-thirds of companies (70%) spent more than they originally planned on pay adjustments for the past 12 months.
As economic challenges loom large in the
In addition to pay pressures, three in four respondents (75%) also are experiencing problems with attracting and retaining talent — a figure that has nearly tripled since 2020. In fact, the tight labor market has been an influencing factor in the decision of nearly seven in 10 companies (68%) to increase salary budgets.
“As inflation continues to rise and the threat of an economic downturn looms, companies are using a range of measures to support their staff during this time,” said
To tackle the competitive labor market, more than half of respondents (57%) have hired candidates higher in the relevant salary range, while a further 76% have adjusted or are considering adjusting salary ranges more aggressively, increasing ranges by 2% to 5%. More than two-fifths of organizations either have adjusted or are considering adjusting salaries more aggressively; 90% of organizations making or considering salary increase adjustments are doing two adjustments per year.
In addition, two-thirds of respondents (67%) have provided more workplace flexibility, while 61% have already put broader emphasis on diversity, equity and inclusion (DEI). Nearly half of companies (46%) are planning or considering improving the employee experience to address inflationary pressures and drive retention. Of these actions, 65% of companies say they are in place with no end date until 2023 or later, while 23% haven’t put any actions in place but are planning to do so.
“With attraction and retention issues persisting, employers should consider the overall employee experience and not just salary increases,” said
About the Salary Budget Planning Report
The Salary Budget Planning Report is compiled by WTW’s Reward Data Intelligence practice. The survey was conducted from
The report summarizes the findings of WTW’s annual survey on salary movement and reviews practices as a means of helping companies with their compensation planning for 2023 and beyond.
About WTW
At WTW (NASDAQ: WTW), we provide data-driven, insight-led solutions in the areas of people, risk and capital. Leveraging the global view and local expertise of our colleagues serving 140 countries and markets, we help organizations sharpen their strategy, enhance organizational resilience, motivate their workforce and maximize performance.
Working shoulder to shoulder with our clients, we uncover opportunities for sustainable success—and provide perspective that moves you.
Learn more at wtwco.com.
Media ContactsIleana Feoli : +1 212 309 5504 ileana.feoli@wtwco.comEd Emerman : +1 609 240 2766 eemerman@eaglepr.com
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2022 GlobeNewswire, Inc., source