Raises — Lots of Belt-tightening in 2024

Aon Plc takes an annual look at compensation and then uses the data gathered to determine what pay raises will be the next year. For 2024, they’ll be lower than they were last year.

The average will be 3.7%. That’s down from 3.9% last year.

Aon partner, Tim Brown says labor budget tightening and inflation caused the drop.

“People are not going to spend what they spent last year,” Brown said. “Also, inflation has come down since last year. So there’s more pressure on salaries.”

Allstate’s Bob Toohey agreed and said compensation budgets will be “lower than last year — all company budgets will be lower than last year.”

Though the amount of pay will drop by a couple of tenths of a percent, Aon and the human resources company, Mercer say raises are still above the pre-pandemic levels of around 3%.

Technology workers will take the biggest hit with just 5% of technology companies doing anything close to aggressive hiring. That’s a huge drop from 22% last year. So technology company workers can expect only a 3.3% raise next year.

Here are the employee raises on average for the last few years:

2021 — 2.4%

2022 — 3.2%

2023 — 3.9%

2024 — 3.5%

Source link: Insurance Journal — https://bit.ly/3F2CAEg

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