Employees at larger companies are far more optimistic about pay raises than their counterparts at smaller businesses, according to the latest findings from LinkedIn’s Workforce Confidence Index.Â
The survey showed that nearly 70% of U.S. workers at enterprise companies, which employ over 1,000 people, received raises this year.Â
This compares to 64% of workers at mid-market companies (with 201-1,000 employees) and just 54% at small businesses (with fewer than 201 employees).
The outlook for pay raises in the coming months is also brighter for those at larger companies.Â
Just under half (48%) of enterprise employees expect a raise within the next six months, compared to 42% of workers at mid-market companies and 41% at smaller businesses.Â
This suggests that workers in larger organizations may feel more secure in their prospects for compensation growth as the new year approaches.
However, this optimism among employees contrasts with the views of business executives.Â
Nearly half (48%) of U.S. executives reported that raises and promotions have become more limited at their organizations, according to LinkedIn’s September Executive Confidence Index.Â
The most pessimistic group were enterprise leaders, with 59% saying that pay increases and promotions are harder to come by now, compared to 47% of mid-market executives and 45% of leaders at smaller businesses.
The gap in expectations could be attributed to economic uncertainty and its effects on company budgets. While larger companies are still managing to provide raises, executives, especially in larger firms, appear more cautious about the future.
With the new year approaching, the outlook for raises seems varied across industries and company sizes. For those looking to secure a raise, staying proactive in performance reviews and continuing to demonstrate value could be key strategies.
