Which benefits are expected to see the most changes for 2023?
Employers in the U.S. are predicting an average salary increase of 3.9 per cent for 2023.
Overall, more than two-thirds (68 per cent) are planning to give raises, while 17 per cent say they’ll give boosts to certain classes of workers and 13 per cent haven’t yet decided, finds a survey by the International Foundation of Employee Benefit Plans (IFEBP).
Broken down, the most popular salary increase is expected to be four per cent:
|
Salary increase |
Percentage of employers |
|
0 to 2.5 per cent |
14 per cent |
|
3 per cent |
20 per cent |
|
3.5 per cent |
13 per cent |
|
4 per cent |
24 per cent |
|
4.5 per cent |
5 per cent |
|
5 per cent |
12 per cent |
|
5.5 per cent |
3 per cent |
|
6 per cent |
9 per cent |
Read more: Canadian employers predict higher salary increases in 2 decades
The factors at play to determine salary increases include performance measures (57 per cent), job level (44 per cent), collective bargaining status (35 per cent), employee classification (35 per cent), department (26 per cent), full-time/part-time status (22 per cent), and service time (17 per cent), finds the survey of 143 employers done in October.
Focus on benefits
As for employee benefits as a key tool for retention, engagement, and recruitment, employers are planning the following changes for 2023:
- employee wellbeing (such as wellness/mental health/financial) (66 per cent)
- work culture and work-life benefits (such as DEI, community service, child/elder care, flexible work options) (57 per cent)
- learning and development (such as manager/skill-based training, educational assistance, student loan repayment) (48 per cent)
- health care benefits (35 per cent)
- retention (such as service awards, recognition, phased retirement) (34 per cent)
- paid leave (such as vacation, holidays, sick leave, parental, maternity, adoption, family, sabbaticals) (32 per cent)
- at-work perks (such as casual dress code, transportation benefits, fitness, childcare, clinics) (27 per cent)
- incentive pay (such as year-end/sign-on/performance/discretionary/retention bonuses, profit-sharing, stock options) (24 per cent)
- retirement benefits (such as defined contribution, defined benefit, deferred compensation) (24 per cent)
- voluntary (employee-pay-all) benefits (15 per cent)
