“Cautious optimism” may be the survey’s message, as compensation budgets seem in line with Mason’s prediction that employers will have to adjust their strategies to reflect the changing economic landscape if inflation cools and the labor market returns to pre-pandemic levels.
Salary budget surveys released by Payscale in late July and WTW at the end of June suggest employers have been adjusting their 2024 compensation budgets as conditions fluctuate. U.S. employers told Payscale they expect to raise salaries 3.8% next year. According to the report from WTW released a month earlier, employers were planning annual salary increases of about 4%.
