For many workers in the U.S., the Great Resignation turned into the Great Regret. That’s the assessment of Fortune magazine which also reports that “quiet quitting has turned into ‘act your wage,’” a term coined by TikTok. Both refer to doing the minimum required to keep a job and reflect changing attitudes toward both employment and compensation.
There are a lot of question marks when it comes to giving raises or not. According to Payscale, 15% of employers are undecided about offering any increases this year. According to its “2023 Compensation Best Practices Report,” 80% of companies surveyed say they plan to give increases. That’s down from 92% last year.
Tip: “Just 11% of companies (compared to 18% last year) said they’ll increase base pay by more than 5% this year.”
According to online media company Insider, “Of those companies that will give a bump to base pay, 56% said it will be over 3%, which is up from 53% of companies who said the same last year. The average increase for 2023 will fall between 4% and 5%. Just 11% of companies (compared to 18% of companies last year) said they’ll increase base pay by more than 5%.”
One change is how often raises are given. According to Cowden Associates, “90% of organizations reported they are planning on making salary adjustments two times in the year instead of the traditional one.”
Economic uncertainty is playing a big role in creating indecision on the part of employers…and employees as well. According to Payscale’s report, “On average, voluntary turnover has dropped more than 10% this year (from 36% to 25%).”
That doesn’t, however, mean employers feel they have more leverage over staff when it comes to compensation. Why? “The labor market remains tight, and most organizations are still having trouble retaining talent,” concludes Amy Stewart, associate director of content and editorial at Payscale. One result? “Budgets for pay increases may continue to change as the economy shifts.”
Have you changed your compensation plans in 2023? If so, tell us about it and share in the conversation on Facebook here.
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