Feb 22, 2023 - Economy

Most workers are getting raises this year, survey finds

Data: Payscale’s 2023 Compensation Best Practices Report; Chart: Axios Visuals
Data: Payscale’s 2023 Compensation Best Practices Report; Chart: Axios Visuals

Looks like a lot of folks may be getting raises this year, according to a Payscale survey out Wednesday morning.

Why it matters: Who doesn't love a salary increase? These numbers look big, but more employers are unsure about their plans in 2023 than last year. And with inflation running at around 6% in the U.S. year over year, some workers are barely keeping pace.

  • Bigger picture, wage growth helps drive up inflation. And the broad goal of the Federal Reserve right now is to cool that off.

By the numbers: 80% of employers said they plan on raising workers' base pay in 2023 — that's down considerably from 92% last year, but still, way more than in pre-pandemic times, says Amy Stewart, associate director of content and editorial at Payscale and author of the compensation report.

  • 15% of employers said they were unsure whether they’d offer raises — up from just 3% in 2022.
  • More striking: 56% of the compensation professionals surveyed said those raises would be greater than 3%.
  • Payscale surveyed close to 5,000 compensation professionals — 69% at companies headquartered in the U.S., 8% in Canada, and 17% in Europe, the Middle East and Africa.

What's happening: Employers are still having a hard time attracting talent, Stewart says. Turnover has fallen, but it's still too high for most employers' comfort.

  • And, of course, they're trying to keep up with inflation though most aren't quite there. Only 11% of respondents said they planned to give raises of more than 5%.
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