Salary increases have been fairly stagnant lately. That has been a surprise to many analysts due to typically strong correlations between low unemployment and wage growth. A new study shows that stagnation is likely to continue.
Organizations are holding the line on pay raises for US employees. According to Mercer’s 2018/2019 US Compensation Planning Survey, salary increase budgets for 2018 are 2.8%—no change from 2017—and projected to be only 2.9% in 2019, despite noticeable factors like the tightening labor market and a high rate of workers voluntarily quitting their jobs. According to Mercer’s 2018 Global Talent Trends Study, a majority of organizations are expressing concerns about attraction and retention. Fair and competitive pay is cited as the number one priority for employees. Even so, this new study shows organizations are not budging on budgets.