Mar 20, 2024 - Economy

Here's what raises will be like this year, per a new survey

Illustration of a small dollar sign magnified by a monocle.

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.
Go deeper