U.S. salary to increase by 4% in 2024, survey says

VIRGINIA, UNITED STATES — Employers in the United States plan to boost salaries by 4% on average in 2024, according to professional services firm WTW’s latest compensation survey. 

This figure is slightly below this year’s actual 4.4% raise but remains elevated compared to pre-2021 levels.

The survey, conducted in December 2023, received over 33,000 responses from companies across 150 countries. 

Inflation (55%) and labor market pressures (52%) are the top factors influencing pay decisions, cited by over half of respondents.

“Though economic uncertainty looms, employers are looking to remain competitive for talent, and pay is a key factor,” said Hatti Johannsson, research director, Reward, Data and Intelligence, WTW. 

“Pay levels are difficult to reduce if markets deteriorate. It’s best to avoid basing decisions that will have long-term implications on their organization on temporary economic conditions.”

Though price growth is slowing, employers aim to stay competitive amid a tight job market. Attrition dipped from 60% last year to 48% now, indicating easing retention woes.

Firms also use non-cash incentives like workplace flexibility (63%), diversity programs (60%) and better employee experiences (55%) to attract and retain staff. Over half have raised starting salaries, reviewed internal equity, and committed to hiring at higher pay grades.

The report urged employers to “train managers on their role, how the compensation program works, and how to communicate it effectively.”