Results suggest majority of employees will not receive adequate cost-of-living raises
ResumeBuilder.com, a resource for professional resume templates and career advice, has published a recent survey report that examines how businesses are planning for 2024 raises. The survey generated responses from 600 business leaders with at least eleven employees.
The study shows that eight percent of business leaders will not give raises to employees in 2024, while 18 percent say the company has not yet decided, and 74 percent will give raises. Of businesses that will give raises, half of companies say 50 percent or less of employees will receive a raise. Only 14 percent of companies offering raises say all employees at the company will get one. Among business leaders committed to providing raises in the new year, 82 percent plan to give performance-based raises, 69 percent plan to offer cost-of-living adjustments, and 55 percent will grant promotion-based raises.
“Many need to understand that only offering a cost of living adjustment is not a raise and may not even compensate for the loss of workers’ earning power due to inflation,” says Chief Career Advisor Stacie Haller. “A cost of living adjustment should just be a baseline to then compensate an employee for performance and/or promotions.”
According to the survey, half of companies offering cost-of-living adjustments (COLAs) say it will be 3 percent or less. Twenty-seven percent of companies say it will be 5 percent or more, 28 percent say 4 percent, 32 percent say 3 percent, 11 percent say 2 percent, and 2 percent say 1 percent or less. Many employers also prioritize compensating their higher-level employees over others. When asked which groups of employees, if any, are most important to give raises to in 2024, 17 percent of respondents say executive-level, and 18 percent say senior-level employees.
ResumeBuilder.com commissioned this online survey using the Pollfish survey platform. It launched on Oct. 4, 2023, and 600 participants completed the full survey. To qualify, all participants were required to work at a company with at least 11 employees and have one of the following job titles: C-level executive, director, president/CEO/chairperson, owner or partner, chief financial officer, or HR manager. Respondents were required to have a household income of at least $75,000 and were screened to ensure they were familiar with the company’s 2024 compensation budget.
To view the complete report, visit https://www.resumebuilder.com/half-of-companies-may-not-give-cost-of-living-raises-in-2024/.
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