From determining how work gets done and how its valued to improving the health and financial wellbeing of your workforce, we add perspective. Fewer companies (31%) cited inflation as a factor in higher estimated pay. U.S. employers planning larger pay raises for 2022, Willis Willis Towers Watson employees with the job title Insurance Broker make the most with an average annual salary . It feels like it's almost a perfect storm, said Gary Straker, senior compensation analyst at Salary.com. Nearly three in four respondents (74%) cited the tight labor market for increasing their budgets from prior projections, while only one-third cited anticipated stronger financial results (34%) and inflation or the rising cost of supplies (31%). Data is a real-time snapshot *Data is delayed at least 15 minutes. In addition to a raise, you may see other improvements at your workplace as companies look for ways to improve worker satisfaction and to stave off employee wanderlust. 2023 Salary Budgets Projected at 20-Year High. 10.]. And projections from the report show that compensation and HR professionals are expecting even higher increases in 2023. Here are your health insurance options, A robot may be your next financial advisor, Top spots to shop for a winter vacation home, 4 big tax mistakes to avoid after stock option moves, fastest annual pace in about four decades. By Rivan V. Stinson While its true that employees buying power is diminished when salary increases are lower than inflation, remember that pay never goes down even when inflation goes down. Companies are allocating more variable pay budgets to above average and top performers. topping 6 percent year-over-year in October, employers face pressure to increase salaries and hourly wages. Frontline hourly workers: Cant get them. Straker said employees and employers are well aware of the power shift. All rights reserved. Only 5.4% have reduced the budget as compared to 2022. while a quarter of them (24.4%) making no change in the budget. Dont underestimate the importance of this education and communication effort. Companies are now budgeting an overall average increase of 3.4% in 2022, compared with the average 3.0% increase they had budgeted in June 2021. Salary increases in Europe and North America have stayed in the 2.7% to 3.0% range since 2010, leaving employers and employees alike to wonder when something would change. For example, employers could use stock grants to retain high-demand and high-potential employees and managers, even if they are not at a level that would traditionally be eligible for equity awards. 2023 employee pay trends - Willis Towers Watson Bonuses, which are generally tied to company and employee performance goals, averaged 16.0% of salary for management and professional employees. In addition, the survey finds that Information Technology (65.5%), Engineering (52.9%), Sales (35.4%), Technically Skilled Trades (32.5%) and Finance (17.5%) will be most sought-after functions for recruitment in the next 12 months. Pay trends to expect in 2022 - WTW - Willis Towers Watson A total of 1,004 U.S. employers responded. Ed Emerman: +1 609 240 2766eemerman@eaglepr.com, Willis Towers Watson Public Limited Company. 2021 was another year of change, with tightening labor markets pushing salary increases around the world. In 2021, for example, the COLA was 1.3%, while wages rose by nearly 3%. While the optimism shown by different countries comes with hints of caution, 2022 will likely be a better year for salary increases. HR pros plan for the highest pay increases in nearly 20 years, By New legislation is packed with tax breaks for homeowners who upgrade to energy-efficient systems and appliances. With roots dating to 1828, Willis Towers Watson has 45,000 employees serving more than 140 countries and markets. More than ever, making the most of your capital means solving a complex risk-and-return equation. In July 2022, organizations in the 15 largest economies projected increases of 4.6% in 2023, however the December 2022 SBP tells a different story, with 2023 projections closer to 5.5%. Published 6 October 22. In these cases, organizations are taking a range of actions, including more frequent pay increases, cost-of-living adjustments and even linking salaries and/or bonus payments to foreign currencies. Action, reaction or no action? create or fine-tune counteroffer programs; accelerate promotions for high-potential and key talent; and Or perhaps you need a more targeted approach to retain specific employee groups by offering retention bonuses or spot award or adjusting salary ranges more aggressively. Salary Increase Budgets Decline for First Time in 12 Years - SHRM Dont risk underinsurance protect yourself against inflation now, Global Semiconductor Industry Survey Report, Top 5 employee compensation trends for 2021, Executive Compensation and Board Advisory, Financial, Executive and Professional Risks (FINEX), Preparing for the EU Shareholders Rights Directive. India to see 10% salary increase in 2023 - Willis Towers Watson Your ability to manage risk is key to your thriving in an uncertain world. How do they work? Last updated 3 April 23. Consider segmenting by employee level (e.g., hourly, professional, executive), performance level or even by areas in which youre having trouble attracting and retaining (e.g., digital talent). The pandemic economy, the Great Resignation and inflation are motivating companies to raise wages and find ways to increase employee satisfaction. It will be interesting to observe whether these nations are, in fact, able to maintain these levels. Salaries at Willis Towers Watson range from an average of $49,594 to $128,462 a year. All rights reserved. From there, employers can "decide if they will be in line with market pay or ahead, and if there are certain benefits they can add to make up for any pay gaps," Jansen said. Among the major industry groups, high-tech and pharmaceutical companies project the largest increases (3.1%) followed by health care, media and financial services companies (3.0%).