As Americans try to cope with the highest inflation in 40 years, employers around the U.S. plan to offer their workers next year an annual raise of 3% to 4%, a new survey shows.
That's roughly in line with the median pay bump employees got in 2022, according to Salary.com, a provider of compensation software and analytics. Last year was the first year in roughly a decade that employers significantly upped their employee compensation budgets.
The sweetened pay hikes reflect three types of raises for workers: general increases in compensation, also known as cost-of-living adjustments to; merit increases based on an employee's performance; and market adjustments that bring workers whose salaries are out of whack in line with their peers. "This could speak to the relationship smaller companies have with their employees, versus at bigger companies where you're just a number," Miller said."They're really reaching out and wanting to make sure employees feel cared for, and maybe they have to do that to compete with bigger companies."
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