Wage Raises Are Coming In 2023, But Is It Enough To Keep Up With Inflation?

A new survey suggests that salaries are expected to grow in the new year, but inflation could water down its impact.  

According to the Willis Towers Watson survey, employers plan to grow their salary budgets by 4.6% in 2023, which would be the highest growth seen in 15 years. However, with inflation remaining at 7.7%, raises will likely be just enough to keep up with the increased cost of living. 

In order to pay for these raises, 21% of employers said they would adjust their rewards packages, 17% said they would raise service and product prices, while 12% said they would restructure and reduce their headcount.  

Of course, the exact raises will vary depending on job demand and performance. For instance, jobs that are seeing a tight squeeze and are critical to company operations will likely see larger pay bumps.