Current:Home > MyHere's the average pay raise employees can expect in 2024 -AssetBase
Here's the average pay raise employees can expect in 2024
View
Date:2025-04-17 15:10:31
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! (8)
Related
- What to watch: O Jolie night
- How smart are spiders? They zombify their firefly prey: 'Bloody amazing'
- Hawaii’s Big Island is under a tropical storm warning as Hone approaches with rain and wind
- Alabama park system acquires beach property in Fort Morgam
- Google unveils a quantum chip. Could it help unlock the universe's deepest secrets?
- Beware, NFL rookie QBs: Massive reality check is coming
- Hundreds cruise Philadelphia streets in the 15th annual Philly Naked Bike Ride
- Prosecutor says ex-sheriff’s deputy charged with manslaughter in shooting of an airman at his home
- NHL in ASL returns, delivering American Sign Language analysis for Deaf community at Winter Classic
- Why Taylor Swift Is “Blown Away” by Pals Zoë Kravitz and Sabrina Carpenter
Ranking
- 'Vanderpump Rules' star DJ James Kennedy arrested on domestic violence charges
- What Each Zodiac Sign Needs for Virgo Season, According to Your Horoscope
- Houston’s Plastic Waste, Waiting More Than a Year for ‘Advanced’ Recycling, Piles up at a Business Failed Three Times by Fire Marshal
- Meaning Behind Justin and Hailey Bieber's Baby Name Revealed
- Grammy nominee Teddy Swims on love, growth and embracing change
- Dunkin' teases 'very demure' return of pumpkin spice latte, fall menu: See release date
- Here's What Judge Mathis' Estranged Wife Linda Is Seeking in Their Divorce
- Dylan Crews being called up to MLB by Washington Nationals, per reports
Recommendation
Realtor group picks top 10 housing hot spots for 2025: Did your city make the list?
Rumer Willis Shares Update on Dad Bruce Willis Amid Health Battle
Bears' Douglas Coleman III released from hospital after being taken off field in ambulance
Run To American Eagle & Aerie for Styles up to 90% Off, Plus Deals on Bodysuits, Tops & More as Low as $3
'Most Whopper
The price of gold hit a record high this week. Is your gold bar worth $1 million?
The Daily Money: Housing market shows some hope
You Won’t Believe These Designer Michael Kors Bags Are on Sale Starting at $29 and Under $100