Almost 8 in 10 (78%) employers gave pay raises in the past six months because of merit, performance, pay compression, or the rising cost of living, according to a recent survey by iHire.
For the 22% who did not give raises, these were the reasons:
- 69.6% couldn’t afford to give raises
- 32.6% were preparing for economic downturn or tightening their 2023 budgets
- 13.0% reported poor or stagnant employee performance
- 13.0% were unsure how to determine fair compensation
“Compensation is top of mind for employers and their workforces,” said Lisa Shuster, Chief People Officer at iHire. “Now is the time for organizations to ensure they are compensating employees fairly while avoiding pay compression. The good news is that most employers do not appear overly worried about a recession and continue to invest in their most valuable business asset: their people.”