More than two-thirds (68 per cent) of U.S. employers say they’re increasing salaries and enhancing employee benefits in 2023 amid a tough labour market, according to a new survey by the International Foundation of Employee Benefit Plans.
It found employers are planning to increase wages by an average of 3.9 per cent next year, while just nine per cent said they’re increasing wages by six per cent or more. A fifth (17 per cent) said they’re increasing pay only for certain workers and 13 per cent said they haven’t decided whether to increase wages.
Read: Employers favouring wage hikes over benefits enhancements amid high inflation: survey
Employers said performance measurement (57 per cent) is the top factor used to determine a pay increase, followed by job level (44 per cent), employee classification (35 per cent) and collective bargaining status (35 per cent).
The survey also found employers are taking a total rewards approach to attract and retain talent in 2023. This includes enhancements to employee well-being programs, including mental health and financial wellness (66 per cent), workplace culture and work-life balance (57 per cent), education and development resources (48 per cent), health benefits (35 per cent), paid leave (32 per cent), in-office perks (27 per cent) and retirement benefits (24 per cent).
Read: Employers using debt repayment benefits to retain employees, alleviate financial stress