Ready for a raise? Here’s the number your employees want

Employees have a magic number in mind when it comes to the salary increase they want this year.

The average employee says a salary increase of $5,780 would considerably improve their life, according to a survey by CouponFollow, a coupon tracking platform. The company surveyed 1,100 employees across industries and pay grades to gauge the amount of cash that would make a difference to their mental and physical health, as well as asking where they would allocate the funds.

According to the study, men desire more of a pay bump, indicating that $6,634 per year would improve their lives, compared to $5,058 for female employees. Older employees also had loftier raise goals, listing $6,110 as their ideal raise, compared to $5,161 for Gen Z, and $5,754 for millennials.

“It’s pretty eye-opening to see that high of an amount, since that adds up to about $15 a day,” says Tiara Rea-Palmer, Director of Partnerships at CouponFollow. “But with inflation at 8.5%, every penny certainly counts.”

Read more: Employees spend 25% of their workday worrying about money

Overall, a 10% raise was the most desired increase, with 59% of respondents saying this would help improve their life. Fifty-seven percent said a 7% raise would have the same effect, and 47% would be happy with a 3% increase.

Most employees will be out of luck when it comes to acquiring those extra funds. Just 9.4% of employers have plans to offer more than a 5% salary increase in 2022, according to a February report by Payscale. The largest share of companies surveyed — 32% — plan to stick with a 3% pay bump.

However, Payscale found many employers are feeling the consequences of those meager increases: 44% say pay is the reason they are losing talent during the Great Resignation.

“When it comes to pay, employers are scrambling to figure out what to offer new hires and how to structure salary increases to retain their current workforce,” Shelly Holt, chief people officer at Payscale, said in a release. “What matters most to employees overwhelmingly includes things that enhance their lives.”

Read more:HR 101: 6 tips to remember when asking for a raise

As Americans tighten their purse strings in an uncertain economy, the CouponFollow survey found that 39% of respondents would put their raise into building a more secure financial safety net. Of that group, around half would pad their emergency fund, and 34% would allocate the money into a retirement account.

It’s small actions that can make the biggest difference as employers plan out their compensation strategies and look to improve their workforce’s overall well-being. Beyond a salary increase, employers should look for other ways to add value to an employee’s work life, through benefits that can take the sting out of financial strain.

“Employers can reevaluate benefits packages, or offer stipends to cover employee spending on office necessities, mental and physical health needs, and lunch,” Rea-Palmer says. “Employers may also want to consider offering flexible schedules or remote or hybrid work if they’re not already. This could make for a more appealing workplace if the salaries can’t increase.”