The Willis Towers Watson (WTW) Reward Data Intelligence practice conducted a survey between October 3 to November 4, 2022 for their Salary Budget Planning Report. About 28,000 responses were received from companies in over 135 countries. Of these, 1,550 of these were organizations based in the US.
What did researchers find?
In their press release, WTW predicts that overall salary increases will rise by 4.6% in 2023, a result of companies responding to inflation and the tight labor market. As many as 70% of companies spent more than they had initially planned on pay adjustments in 2022. 21% of employers also said that they will increase spend on compensation and benefit programs valued most by employees. How will they do this? 17% of organizations are considering raising the price of their goods or services, while 12% will undergo restructuring.
Are the changes to the labor market in any way related?
The short answer is yes – 75% of employers surveyed are struggling to attract and retain talent; 2 in 3 companies (68%) have chosen to increase budgets for salary for this reason. Lesli Jennings, North America Leader of Work Rewards and Careers at WTW, says,
With attraction and retention issues persisting, employers should consider the overall employee experience and not just salary increases. By focusing on health and wellness benefits, workplace flexibility, careers and DEI, organizations can position themselves as the employer of choice for their current and prospective employees.