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Employers saw a 3.8% increase in total compensation spending from September to December 2023, per the recent U.S. Bureau of Labor Statistics report.
In December 2023, private-industry employers invested an average of $12.77 per hour on benefits for their employees, including various components such as $3.26 on paid leave, $3.17 on legally required benefits, $3.14 on insurance, $1.71 on supplemental pay, and $1.50 on retirements and savings.
In response to employee demands, employers are proactively enhancing their compensation packages, with a planned average salary increase of 4% for 2024. Despite these efforts, 53% of workers feel that their paychecks are failing to keep pace with inflation, leading to financial challenges for those grappling with escalating costs.
The evolving landscape of inflation, escalating healthcare expenses, and shifting work dynamics poses challenges for employers striving to provide competitive total compensation packages. It is crucial for employers to stay vigilant, closely monitor market trends, and continuously optimize their costs to navigate these complex economic conditions effectively. Download the bulletin for more details.