SHOW ME THE MONEY, HONEY
The number one question we’re asked these days by clients and candidates is what the salary landscape will look like for 2024. As recruiters, we’re here to candidly give you the rundown on what our predictions are for salary trends and compensation packages in the new year. Let’s just say we’re feeling hopeful for 2024 amid a tight job market and economic conditions!
Salary increases across the board: 2023 was a difficult year for competitive salaries and compensation packages. On the heels of the Great Resignation, we saw many companies being very conservative with regard to starting salaries. Many candidates who were making lateral moves weren’t getting the hefty salary increases that we saw in 2021. According to PayScale, the average salary increase for the workforce in 2024 is 3.8%.* However, leading up to the pandemic, the average increase was 3%, so the 3.8% increase reflects the nature of the job market, which still remains competitive.
Strategic emphasis on skills: In 2024, a notable trend is the willingness of employers to remunerate premium rates for specialized skills. Given the relentless advancements in technology, the demand for specific expertise, such as artificial intelligence and performance marketing, has skyrocketed. To attract top talent that can provide employers with these specialized skills, more than half of employers are prepared to go above industry benchmarks for salaries to attract highly skilled talent*.
Employees want raises and aren’t afraid to ask: As we wrap up the year, many employees are asking for raises, and unlike other years, they aren’t afraid to ask for what they want; in fact, 63% of workers plan to ask for a raise before the end of the year.* There are many factors that are driving employees to ask for raises, such as higher inflation and new pay transparency laws. The pay transparency laws in some states are forcing employers to post salary ranges for job openings, which means current employees can assess whether they are receiving competitive compensation or potentially being undervalued.
2023 was a hard year for many clients and candidates; however, 2024 is looking promising in the talent industry. Employers should prepare ahead of the new year so you’re stepping into January ready to take on the ever-evolving talent landscape. Salary increases, skill-centric compensation models, and the heightened competition for talent collectively shape the salary landscape for professionals and companies alike. The new year will be a transformative year that is not solely about salaries but more about cultivating workplaces where both employers and employees can thrive professionally.
*2024 Average Salary Increase Projections. (2023, November 8). Payroll Partners. https://www.payrollpartners.com/2024-average-salary-increase-projections/#:~:text=A%20survey%20by%20PayScale%2C%20businesses
*2023 Salary Guide. (n.d.). English. https://www.roberthalf.com/us/en/insights/salary-guide
