WTW’s Salary Budget Planning Report reveals that U.S. salary increase budgets are projected to remain stable at 3.7% in 2025, compared to 3.8% in 2024, still above the pre-pandemic norm of 3%. The average increase in total payroll was 5.5% in 2024.

Companies reducing salary budgets cite weaker financial results (36%) and cost management (34%) as main reasons, while those increasing budgets point to inflation (39%) and labor market concerns (31%). Employee attraction and retention difficulties decreased to 36%, down 9 percentage points from last year.

Organizations are focusing on workplace improvements, with 54% emphasizing DEI, 53% enhancing employee experience, and 52% offering flexible work arrangements.

Il rapporto sulla pianificazione del budget salariale di WTW rivela che i budget per gli aumenti salariali negli Stati Uniti si prevede rimarranno stabili al 3,7% nel 2025, rispetto al 3,8% nel 2024, ancora sopra la norma pre-pandemica del 3%. L’aumento medio della retribuzione totale è stato del 5,5% nel 2024.

Le aziende che riducono i budget salariali citano risultati finanziari più deboli (36%) e gestione dei costi (34%) come principali motivazioni, mentre quelle che aumentano i budget indicano l’inflazione (39%) e le preoccupazioni relative al mercato del lavoro (31%). Le difficoltà nella attrazione e nella retention dei dipendenti sono diminuite al 36%, in calo di 9 punti percentuali rispetto all’anno scorso.

Le organizzazioni si stanno concentrando sul miglioramento del luogo di lavoro, con il 54% che enfatizza la DEI, il 53% che migliora l’esperienza dei dipendenti e il 52% che offre modalità di lavoro flessibili.

El Informe de Planificación del Presupuesto Salarial de WTW revela que se proyecta que los presupuestos de aumento salarial en EE.UU. se mantendrán estables en 3.7% en 2025, en comparación con 3.8% en 2024, todavía por encima de la norma prepandémica del 3%. El aumento promedio de la nómina total fue del 5.5% en 2024.

Las empresas que reducen los presupuestos salariales citan resultados financieros más débiles (36%) y gestión de costos (34%) como las principales razones, mientras que aquellas que aumentan los presupuestos señalan la inflación (39%) y las preocupaciones del mercado laboral (31%). Las dificultades para atraer y retener empleados disminuyeron al 36%, bajando 9 puntos porcentuales con respecto al año pasado.

Las organizaciones se están centrando en mejorar el lugar de trabajo, con un 54% enfatizando la DEI, un 53% mejorando la experiencia del empleado y un 52% ofreciendo arreglos de trabajo flexibles.

WTW의 급여 예산 계획 보고서에 따르면, 미국의 급여 인상 예산은 2025년에 3.7%로 안정세를 유지할 것으로 예상되며, 이는 2024년의 3.8%보다 낮지만 팬데믹 이전의 3%를 여전히 초과하는 수치입니다. 총 급여의 평균 인상률은 2024년에 5.5%에 달했습니다.

급여 예산을 줄이는 기업들은 재정 결과의 둔화(36%)와 비용 관리(34%)를 주요 이유로 꼽고 있으며, 예산을 늘리는 기업들은 인플레이션(39%)과 노동 시장의 우려(31%)를 지적하고 있습니다. 직원 유치와 유지의 어려움은 36%로 감소했으며, 이는 지난해에 비해 9퍼센트 포인트 감소한 수치입니다.

조직들은 근무 환경 개선에 집중하고 있으며, 54%가 다양성, 형평성, 포용성(DEI)을 강조하고, 53%가 직원 경험을 향상시키며, 52%가 유연한 근무 형태를 제공하고 있습니다.

Le rapport de planification du budget salarial de WTW révèle que les budgets d’augmentations de salaires aux États-Unis devraient rester stables à 3,7% en 2025, contre 3,8% en 2024, tout en restant au-dessus de la norme pré-pandémique de 3%. L’augmentation moyenne de la masse salariale totale était de 5,5% en 2024.

Les entreprises qui réduisent leurs budgets salariaux citent des résultats financiers plus faibles (36%) et la gestion des coûts (34%) comme principales raisons, tandis que celles qui augmentent leurs budgets invoquent l’inflation (39%) et les préoccupations concernant le marché du travail (31%). Les difficultés d’attraction et de rétention des employés ont diminué à 36%, soit une baisse de 9 points de pourcentage par rapport à l’année dernière.

Les organisations se concentrent sur l’amélioration du lieu de travail, avec 54% mettant l’accent sur la DEI, 53% améliorant l’expérience des employés et 52% offrant des modalités de travail flexibles.

Der Gehaltsbudgetplanungsbericht von WTW zeigt, dass die Gehaltserhöhungsbudgets in den USA für 2025 voraussichtlich stabil bei 3,7% bleiben werden, verglichen mit 3,8% im Jahr 2024, und immer noch über dem Vor-Pandemie-Niveau von 3% liegen. Der durchschnittliche Anstieg der gesamten Lohnsumme betrug 5,5% im Jahr 2024.

Unternehmen, die die Gehaltsbudgets reduzieren, führen schwächere finanzielle Ergebnisse (36%) und Kostenmanagement (34%) als Hauptgründe an, während diejenigen, die die Budgets erhöhen, die Inflation (39%) und Bedenken hinsichtlich des Arbeitsmarktes (31%) anführen. Die Schwierigkeiten bei der Anwerbung und Bindung von Mitarbeitern sind auf 36% gesunken, was einem Rückgang um 9 Prozentpunkte im Vergleich zum Vorjahr entspricht.

Organisationen konzentrieren sich auf Verbesserungen am Arbeitsplatz, wobei 54% die Vielfalt, Chancengleichheit und Integration (DEI) betonen, 53% die Mitarbeitererfahrung verbessern und 52% flexible Arbeitszeiten anbieten.

Positive


  • Salary increases remain above pre-pandemic levels at 3.7%

  • Total payroll expenses showed strong growth at 5.5% in 2024

  • Employee attraction and retention challenges decreased by 9 percentage points

Negative


  • Salary increase budgets projected to slightly decrease from 3.8% to 3.7%

  • 36% of companies cite weaker financial results as reason for reducing salary budgets

  • 34% report cost management concerns affecting salary decisions

Insights


The projected 2025 salary budgets holding steady at 3.7% versus 3.8% in 2024 signals a stabilizing compensation environment, though still elevated compared to pre-pandemic levels. The total payroll expense increase of 5.5% in 2024 suggests companies are managing costs through variable components rather than fixed salaries. For WTW, this market outlook presents both opportunities and challenges – while stable labor costs benefit their corporate clients, reduced hiring difficulties could impact demand for their compensation consulting services. The focus on retention and strategic budget allocation indicates continued need for WTW’s advisory services, particularly in designing targeted compensation strategies. The data suggests a soft landing in the labor market rather than a sharp correction.

The evolving workplace dynamics present strategic implications for WTW’s business model. The decline in companies reporting hiring difficulties (down 9% from last year) indicates a market shift, but the persistence of above-historical salary increases suggests structural changes in compensation expectations. The emphasis on DEI (54% of companies) and workplace flexibility (52% offering remote/hybrid options) creates consulting opportunities in organizational transformation. For WTW, this environment demands evolution of their service offerings beyond traditional compensation advisory to include broader workforce strategy consulting, potentially driving new revenue streams in areas like DEI, employee experience and flexible work arrangement design.












Despite today’s tight labor market and relatively low unemployment, organizations hold firm on pay raises

NEW YORK, Dec. 18, 2024 (GLOBE NEWSWIRE) — Although fewer organizations report difficulty with attraction and retention, salary increase budgets at U.S. companies are projected to remain at the same level as last year. While salary increase budgets are stabilizing, with 2025 planned increases projected to be 3.7% on average compared with the 3.8% average budget awarded in 2024, they remain higher than the pre-pandemic norm of 3%. This is according to the latest Salary Budget Planning Report by WTW (NASDAQ: WTW), a leading global advisory, broking and solutions company.

Despite a conservative outlook for 2025, salary increases remain at a healthy rate by historic standards and amid higher total payroll expenses (which include salaries, bonuses, variable pay and benefit costs). According to WTW’s survey findings, the average increase in payroll for respondents was 5.5% in 2024.

For those companies planning to reduce salary increase budgets, weaker financial results (36%) and cost management concerns (34%) were the most commonly cited reasons. For those planning to increase salary budgets, inflationary pressures (39%) and tight labor market concerns (31%) were the most common factors.

Steady and improved pay increases are indicative of organizations’ investment in talent. Overall, fewer organizations (36%) reported difficulty in attracting and retaining employees, down nine percentage points from last year and 17 percentage points from the prior year.

“Although salary is crucial for employees, other elements — such as healthcare and retirement benefits, new challenges, work flexibility and meaningful contributions — are significant as well. Companies should consistently evaluate their comprehensive offerings, focusing on workplace culture, communication, and a holistic approach to benefits and rewards,” stated Russ Wakelin, head of Global Product Development within Rewards Data Intelligence at WTW.

As organizations focus on their workforces, many have taken action to improve workplace culture in light of the current market conditions. For instance, more than half (54%) have placed broader emphasis on diversity, equity and inclusion, and just as many (53%) have taken steps to improve the employee experience. In addition, 48% are incorporating more workforce flexibility. More than half (52%) of organizations offer or are planning to offer the choice for remote, onsite or hybrid work arrangements.

“The U.S. labor market has stabilized because demand for talent dropped significantly from the prior three years. But supply has not changed, which is why the labor market still has vulnerabilities. Employers planning to lower salary increases closer to the 3% we saw for the decade before 2022 should understand that the competition for talent is still fairly strong, especially in certain industries. The focus should now be on retention, so spending the salary increase budget wisely to manage potential undesired attrition if demand was to pick up in 2025 is critical to future-proofing your workforce,” said Lori Wisper, global solutions leader, Work & Rewards, WTW.

About the survey

The Salary Budget Planning Report is compiled by WTW’s Rewards Data Intelligence practice. The survey was conducted between September and the end of October 2024. Over 37,000 responses were received from companies across over 150 countries worldwide. In the U.S. 2,002 organizations responded.

About WTW

At WTW (NASDAQ: WTW), we provide data-driven, insight-led solutions in the areas of people, risk and capital. Leveraging the global view and local expertise of our colleagues serving 140 countries and markets, we help organizations sharpen their strategy, enhance organizational resilience, motivate their workforce and maximize performance.

Working shoulder to shoulder with our clients, we uncover opportunities for sustainable success—and provide perspective that moves you. Learn more at wtwco.com.

Media contacts:

Ileana Feoli
[email protected]

Stacy Bronstein
[email protected]








FAQ



What is WTW’s projected salary increase budget for 2025?


According to WTW’s report, U.S. salary increase budgets are projected to be 3.7% in 2025.


How does WTW’s 2025 salary forecast compare to 2024?


The 2025 projected increase of 3.7% is slightly lower than the 3.8% awarded in 2024.


What was the total payroll increase reported by WTW for 2024?


WTW’s survey found that the average increase in total payroll was 5.5% in 2024.


What are the main reasons companies cited in WTW’s report for reducing salary budgets?


Companies cited weaker financial results (36%) and cost management concerns (34%) as the main reasons for reducing salary budgets.


What percentage of companies in WTW’s survey report difficulty with attraction and retention?


36% of organizations reported difficulty in attracting and retaining employees, down 9 percentage points from the previous year.





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