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Average Salary Increase in 2024 Increases 4%

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1.5 minute read

According to the latest Salary Budget Planning Survey conducted by WTW, U.S. employers are gearing up to provide a salary increase of 4% in 2024. This surpasses the 3.1% increase in 2021 and previous years, although slightly lower than the actual average increase of 4.4% in 2023. The driving force behind this salary hike is the rising inflationary pressures and concerns over the tight labor market conditions, according to survey results.

While inflation has cooled down from the 40-year high of 9.1% in June 2022, employees are still dealing with the increased costs of food, healthcare, housing, and other expenses. A recent study by Bank of America revealed that months of high living costs have caused employees' financial well-being to hit a record low.

The competition for skilled labor remains fierce, with voluntary turnover and attrition standing at 11% overall, despite fewer employers reporting problems finding and retaining workers.

Employers are not solely relying on pay bumps to attract, retain, and support their employees in 2024. According to WTW, many organizations are enhancing nonmonetary perks including expanding efforts to enhance the overall employee experience (55%), improved workplace flexibility (63%), and increasing their focus on diversity, equity, and inclusion (60%). Many employers have pledged to recruit top-tier talent with more competitive salary packages (55%) and 54% are also committed to conducting comprehensive compensation reviews for specific employee groups, while 49% are raising the bar by increasing starting salary ranges.

These findings shed light on the evolving landscape of employee benefits and reflect the proactive measures employers are taking to create a supportive and rewarding work environment. Download the bulletin for more details.

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National Insurance Services is not a law firm and no opinion, suggestion, or recommendation of the firm or its employees shall constitute legal advice. Readers are advised to consult with their own attorney for a determination of their legal rights, responsibilities and liabilities, including the interpretation of any statute or regulation, or its application to the readers’ business activities.

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Bill Disch

Bill Disch

Since he was young, Bill Disch has possessed a strong sense of service – from delivering milk and newspapers, to serving in the Air Force. His integrity and strong desire aid in his want to make a difference in whatever he’s doing. Bill is known for his strong analytical capabilities and smart business sense. He enjoys coming up with creative solutions to complex problems by working together with all involved and leveraging his clients’ knowledge and talent. Bill works as a Senior Account Representative in Indiana, as well as growing life and disability in Market Development in Michigan. He is a licensed insurance agent. Prior to working at National Insurance Services (NIS), he worked as an Assistant Business Superintendent for a Michigan K-12 school who was an NIS customer.