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News » American CFOs plan over 4% pay raises, Gartner survey reveals

American CFOs plan over 4% pay raises, Gartner survey reveals

Planned Changes to Average Employee Compensation. Photo from Gartner CFO Survey (March 2024)

CONNECTICUT, UNITED STATES — A recent Gartner survey of 296 Chief Financial Officers (CFOs) and finance leaders in the United States found that 71% plan to increase average employee compensation faster than inflation in 2024. 

Employee pay is second only to technology in areas where companies are boosting budgets. 

While smaller than recent years when inflation neared 8%, most CFOs (58%) will raise pay 4-9%. A notable 71% plan at least 4% increases, above current inflation levels.

“The fact that most CFOs are planning for pay growth that exceeds the level of inflation indicates how tight the labor market is right now, and how important it is to find and retain top talent,” said Alexander Bant of Gartner’s Finance practice.

Within finance departments, employees anticipate 7% base pay growth. However, Bant cautioned that “CFOs know they can’t pay their way to retention forever.” 

Beyond compensation, he identified work-life balance, location flexibility, health benefits and vacation time as key retention drivers CFOs should invest in.

With location and work-life balance top priorities for finance staff after pay, return-to-office requirements could harm retention. Gartner found such mandates reduced intent to stay by 8% for average knowledge workers and 16% for high performers.

“Finance leadership should be clear that enforcing return-to-office mandates comes with attrition risk and should be weighed against the potential benefits,” said Bant.

The Gartner survey echoes WTW’s compensation survey in December 2023, where American employers plan to boost salaries by 4% on average in 2024.

The Workforce Monitor survey of the American Staffing Association shows 53% of American workers feel their pay is not keeping up with rising prices, with 38% reporting increased financial stress compared to last year.

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