2023 Average Pay Increases Projected to hit 4.6%

SHRM reports that US employers plan to increase salaries an average of 4.6% in 2023, up from 4.2% this year.  SHRM cites that 3 out of 4 employers surveyed say inflationary pressures and the ongoing challenges of finding and keeping workers are the main reasons for the higher projected increases.

To fund this higher pay, organizations report they are limiting benefits and perks, raising the prices of their products or services, and resorting to layoffs.

The survey reports that 76% of employers surveyed have increased, or are considering increasing, salary ranges by 2-5%.

The SHRM study found that inadequate total compensation was the most common driver of employee turnover, ranked among the top three reasons by 74% of respondents and listed as the top reason by 39%, the survey found.