Many employees expecting a raise this year to cover cost-of-living increases may be sorely disappointed. According to a new survey from Gartner, only 28% of CEOs and CFOs plan to adjust salaries to match inflation for all employees, while 51% will boost pay for top performers only. An additional 19% will adjust pay only for employees in selected markets where the inflation is the highest.
“It’s clear that organizations are attempting to buy more time to read the tea leaves between persistently high inflation, the threat of recession, and the state of the labor market before making significant strategic shifts,” Randeep Rathindran, vice president, research in the Gartner Finance practice, said in a press release.
In the long run, however, the respondents do see increased compensation as key to retaining talent – 43% plan to give one-time bonuses to employees, and 39% plan to index their salary adjustments to inflation.