According to a new survey from human resources consulting firm Mercer, salary compensation budgets are expected to grow by an average of 3.5% in 2024
The expected pay increases for next year reflect “the ongoing tightness of the labor market and low levels of unemployment. However, if the labor market continues to stabilize and inflation cools further as we move towards the end of the year, compensation pressures are likely to continue to decline,” -Lauren Mason, Senior Principal at Mercer
In that case, employers could further trim their planned pay increases. Or they could decide to further boost raises and increase promotions if conditions warrant — as they did this year, with budgets being set for a 3.8% boost but employers ended up raising base salary levels an average of 5.6% instead
Also notable: according to the Mercer survey, employers said they plan to promote fewer people, at an average of 8.7% of their staff
Employee Household Expenses Predicted To Rise Again In 2024
Next year’s employee’s potential tension point: Will a 3.5% pay increase cover predicted rising expenses?
✓ Rent up by 3.9%
✓ Credit Card Debt up by 21% + APR with record levels of credit card debt exceeding over $10,000 per household
✓ Utilities up by 3.3%
✓ Food Prices rising fast – weekly grocery bill for a family of 4 could jump from $227 in 2023 to over $300 by the end of 2024 (+32.1%)
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