ARLINGTON, Va.–Credit unions that have had no choice in recent years but to match other employers when it comes to raising employee pay if they want to retain employees will likely find more muted pay increases this year, according to a new report.
On average, companies are planning for salary increases of 4% in 2024, according to a December survey of more than 1,800 employers by advisory firm Willis Towers Watson.
That is down from the 4.4% raises that businesses handed out in 2023, yet significantly higher than the average 3% increases that marked prepandemic years, the company reported.
What Separate Study Found
A separate study by the benefits advisory firm Mercer of more than 900 employers in late 2023 found many businesses said they planned average merit raises of 3.5% in 2024, slightly down from 2023’s 3.8%.
Even tech companies polled by Mercer said they planned merit raises of about 3.2%, retreating from that industry’s talent bidding wars of 2021 and 2022, the Wall Street Journal reported.
The Journal also cited a December survey of 666 companies with revenue between $1 million and $20 million, three-quarters of chief executives said they planned to maintain or increase pay raises in 2024.
Some Plan No Raises
Some 21% said they would give smaller raises and 4% said they planned no raises at all, according to Vistage Worldwide, the business-coaching and peer-advisory firm that conducted the survey on behalf of The Wall Street Journal.
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