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