Current:Home > ContactHere's the average pay raise employees can expect in 2024 -RiskWatch
Here's the average pay raise employees can expect in 2024
View
Date:2025-04-13 17:48:18
With prices still running hot around the U.S., millions of workers are counting on a large enough annual pay bump to keep them a step ahead of inflation next year.
Employers plan to offer an average salary increase of 4% for 2024, according to a new survey from WTW, which advises companies on compensation issues. That figure is slightly lower than in 2023, when raises averaged 4.4%, but still tops the roughly 3% increase companies were offering in previous years, the consulting firm found.
Another consulting firm, Korn Ferry, also expects a median salary hike of 4%, although other forecasts predict more modest increases. Tom McMullen, a senior client partner with Korn Ferry, said in an email that pay increases next year are projected to be "high relative to how they they've tracked over the past 10 years."
Not surprisingly, annual pay increases also can vary significantly by industry. In 2023, for example, the total salary hike for engineers approached 5%, while people in retail and education received far smaller increases, data from PayScale shows. Federal workers, who tend to earn less than their private-sector peers, are slated to get a 5.2% bump next year.
- More U.S. companies no longer requiring job seekers to have a college degree
What's driving pay raises
Two main factors continue to drive employers' thinking on pay, according to WTW.
First, although inflation is no longer through the roof, Americans continue to grapple with higher costs for groceries, rent, health care and other staples. The typical American household must spend an additional $11,434 annually just to maintain their standard of living compared with three years ago, just before inflation soared to 40-year highs, according to a recent analysis of government data from Republican members of the U.S. Senate Joint Economic Committee.
"While inflation is much less than it was a year ago, there is still pressure on wages," McMullen noted.
Second, the labor market remains tight after millions of people exited the workforce during the pandemic. The battle for talent among employers remains fierce, requiring competitive merit increases to retain good workers.
Beyond a decent pay raise, organizations are looking to keep staffers happy by offering greater job flexibility, with 55% of employers surveyed by WTW offering employees a choice of remote, in-office or hybrid work.
WTW, which also looked at compensation forecasts around the world, included responses from more than 1,800 U.S. companies as part its findings.
Of course, a year or two of above-average pay hikes won't make up for decades of stagnant wage growth in the U.S. According to recent Census data, 4 in 10 Americans said they were struggling to pay the bills. And while prices have cooled, a survey from Bankrate this fall found that 60% of working Americans report that their income has lagged inflation over the past 12 months.
Alain SherterAlain Sherter covers business and economic affairs for CBSNews.com.
TwitterveryGood! (146)
Related
- Why Sean "Diddy" Combs Is Being Given a Laptop in Jail Amid Witness Intimidation Fears
- Taylor Swift Cheers on Travis Kelce at Kansas City Chiefs Game Against Green Bay Packers
- Why some investors avoid these 2 stocks
- The Challenge's Ashley Cain Expecting Baby 2 Years After Daughter Azaylia's Death
- What to watch: O Jolie night
- Authorities say heavy rains and landslides in Tanzania kill at least 47 and hurt or strand many more
- Fatal stabbing near Eiffel Tower by suspected radical puts sharp focus on the Paris Olympics
- Horoscopes Today, December 3, 2023
- California DMV apologizes for license plate that some say mocks Oct. 7 attack on Israel
- North Dakota Gov. Doug Burgum ends 2024 Republican presidential bid days before the fourth debate
Ranking
- Brianna LaPaglia Reveals The Meaning Behind Her "Chickenfry" Nickname
- San Francisco’s Brock Purdy throws 4 TD passes as 49ers thump injured Hurts, Eagles 42-19
- KISS delivers explosive final concert in New York, debuts digital avatars in 'new era'
- Taylor Swift and Travis Kelce Spotted at Kansas City Christmas Bar With Patrick and Brittany Mahomes
- Mets have visions of grandeur, and a dynasty, with Juan Soto as major catalyst
- Friends Actress Marlo Thomas Shares Sweet Memory of Matthew Perry on Set
- Eagles vs. 49ers final score, highlights: San Francisco drubs Philadelphia
- Will Mary Cosby Return for Real Housewives of Salt Lake City Season 5? She Says...
Recommendation
Hackers hit Rhode Island benefits system in major cyberattack. Personal data could be released soon
How much should it cost to sell a house? Your real estate agent may be charging too much.
Consider a charitable gift annuity this holiday. It's a gift that also pays you income.
Zelenskyy laments slow progress in war with Russia, but vows Ukraine not backing down
Meet the volunteers risking their lives to deliver Christmas gifts to children in Haiti
Alabama star lineman Tyler Booker sends David Pollack a message after SEC Championship
Who killed Heidi Firkus? Her husband Nick says he didn't do it.
Queen Latifah, Billy Crystal and others celebrated at Kennedy Center Honors