Compensation is always an important part of the employer arsenal, but in 2023, that might be more true than ever. Fueled by a confluence of factors—rising inflation and changing employee expectations among them—HR leaders are planning to turn to larger-than-usual salary increases in 2023, data indicates.
But reevaluating employee salaries isn’t the only thing HR and other company leaders need to think about in the coming year. Here is what to know about salary strategies as 2023 approaches.
Bonuses may be an even bigger part of the equation. What’s a hot job market without salary increases, benefits enhancements, and bonuses? More employers say they’re offering, or considering offering, bonuses to employees to both reward workers and help them with rising expenses.
According to Pearl Meyer, 5% to 20% have increased or plan to increase competitive positioning for one or more pay components, like base salary, cash bonuses, or equity-based incentives.