Are you dissatisfied with your current salary? There may be light at the end of the tunnel.
According to
These figures signify a jump not seen since before the COVID-19 pandemic, as employers navigate continued uncertainties while also trying to retain their current workforce.
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“Companies are between a rock and a hard place when it comes to compensation planning,” Catherine Hartmann, North America Rewards practice leader at Willis Towers Watson, said in a release. “On the one hand, employers need to continue effectively managing fixed costs as they rebound from the pandemic. On the other hand, companies recognize they need to boost compensation, especially with millions of Americans quitting their jobs, changing careers or postponing looking for employment.”
High-tech and pharmaceutical companies showed the highest projected increase in salaries at 3.1%. Healthcare, media and financial service companies followed closely behind, with anticipated increases of 3%. Lower increases of 2.4% are projected for employees of the oil and gas industry, as well as those working in leisure and hospitality.
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Top performing employees can anticipate an even greater boost to their paychecks, as Willis Towers Watson data found that employees with high performance ratings were given a 4.5% increase on average.
The stiff competition for talent means that these projected increases will only go up in the future, Hartmann told Employee Benefit News. “A year from now if we take a look at these, I think there is the chance that this 3% could definitely go up because of how hot the labor market is at the moment.”
Salary increases are not the only incentive employers are offering. Over 90% of companies have been issuing annual performance bonuses, a marked increase from 76% that awarded them last year.
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These bonuses are typically issued in conjunction with company and employee performance goals, but Hartmann says they can take additional forms as well.
“A lot of my clients are doubling down on signup bonuses — some may be increasing the ones that they had in the past, or providing them for hourly employees that they didn't in the past,” she says. “They're looking at retention bonuses, and looking at them at higher levels.”
