Here's what raises will be like this year, per a new survey
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Illustration: Brendan Lynch/Axios
Companies expect to give out 4.5% raises this year — a dip from the 4.8% average bump given in 2023, per a new survey of human resources professionals out Wednesday morning.
Why it matters: It's another sign that the job market is cooling but still strong — raises will likely outpace inflation in 2024.
By the numbers: Just over 79% of companies plan on giving pay raises this year, the lowest since 2021 — and 6 points below 2019, according to Payscale, which has conducted this survey for the past 15 years.
- Payscale surveyed 5,735 HR leaders, compensation professionals and business owners from November to December 2023.
- About a third of respondents are in industries mostly comprised of blue-collar workers, who are seeing bigger raises.
Zoom in: Respondents were also asked about pay transparency. It's an issue now in the spotlight as more states pass laws requiring companies to list salary ranges in job postings — a move to promote more pay equity.
- Many more companies are sharing these numbers now; 39% said they do it regardless of the law, and 21% said they do it only when it's required.
- That's up from 27% and 18% in 2023.
Yes, but: The share of companies that said they're "resisting" pay transparency rose to 13% from 11% last year.
- These could be companies that aren't in states where the practice is required and don't want to do it — or companies that aren't complying with the law.
- Employers in Washington state are facing lawsuits for failing to disclose salary information. The state's law went into effect in January 2023.
