Almost three-quarters (71%) of CFOs plan to increase employee compensation more than 4% this year, according to a survey by Gartner.
The majority (58%) of increases will be between 5% and 9%. While that’s down from the 70% planning similar raises last year, it’s still above the rate of inflation in most markets.
“The fact that most CFOs are planning for pay growth that exceeds the level of inflation indicates how tight the labor market is right now, and how important it is to find and retain top talent,” said Alexander Bant, chief of research in the Gartner Finance practice.Gartner notes that return-to-office mandates could impair employee retention. Their research found that these mandates reduce intent to stay by 8% for the average knowledge worker, and by 16% for high-performing emplooyees.
“Finance leadership should be clear that enforcing return-to-office mandates comes with attrition risk and should be weighed against the potential benefits,” said Bant. “Especially so in the current talent market where replacing those who choose to leave will not be easy or inexpensive.”
