Pay raises are shrinking in 2025, CFOs say
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Companies are planning smaller raises this year, according to a new survey of chief financial officers from Gartner.
Why it matters: Outside of those skyrocketing egg prices, inflation has moderated and, at the same time, the job market has cooled way down.
The big picture: It's become harder to find a job, particularly in the white-collar world. So employers are far less worried about people quitting and don't need to do as much to get workers to stick around.
- "Nobody is talking about the Great Resignation anymore," says Randeep Rathindran, a vice president in the finance practice at Gartner.
By the numbers: The vast majority of employers, 94%, are still planning raises this year, per Gartner, which surveyed 300 CFOs and finance executives. The amounts are just smaller now.
- The share of CFOs planning to raise average employee compensation by 4% or more in 2025 fell to 61% from 86% in 2023.
- 37% of respondents said they are planning to offer "nominal" raises this year, which is up from 9% in 2023.
The bottom line: Something is better than nothing.
