In that case, employers could further trim their planned pay increases.
Or they could decide to further boost raises and increase promotions if conditions warrant — as they did this year, when merit increase budgets were set for a 3.8% boost but employers ended up raising base salary levels for employees who remained in their roles by an average of 5.6% instead.
“This is a result of off-cycle pay increases, which 59% of employers reported providing in 2023. The top reasons cited for off-cycle increases were to address retention concerns, counteroffers, market adjustments and internal equity,” Mason said.
