Average Salary Increment in USA 2024
Average Salary Increment in USA 2024
In 2024, the salary increment landscape in the United States reflects a continuation of the elevated trends observed in 2023, with total salary increase budgets projected to rise by an average of 4.1 percent. This follows a substantial 4.4 percent increase in 2023, the highest since 2001. Although the projected increase for 2024 is a slight step down from the previous year, it remains notably higher than pre-pandemic levels. The labor market, while still tight, is showing signs of loosening, with a decline in job openings and reduced worker mobility. The Conference Board forecasts a short and shallow recession in early 2024, leading to negative GDP growth, but the impact on wages is expected to be limited. Despite the uncertainties, 59 percent of surveyed employers reported that their salary increase budgets for 2024 are not yet firm, indicating a cautious approach.
While salary increase budgets are projected to rise, employers are also adopting diverse strategies beyond base pay increases to address recruitment and retention challenges in 2024. This includes the utilization of sign-on bonuses and retention awards, albeit at a reduced rate. Companies are expanding the inclusion of employees in short-term incentive plans and increasing investment in recognition programs. The data also suggests that companies are navigating economic uncertainties by considering alternative approaches to compensation, showcasing a nuanced response to the evolving economic landscape.
The salary increment trends for 2024 in the USA indicate a measured continuation of the elevated salary increase budgets observed in 2023, with employers navigating economic uncertainties through a combination of base pay increases and diverse compensation strategies
