Two-fifths of U.S. employees say they didn’t receive a raise in the last year and those who did received raises that were 25 per cent lower than in 2022, according to a new survey by BambooHR.
The survey, which polled 1,500 employees, found the average pay increase was 4.6 per cent, down from 6.2 per cent last year. Nearly a third (29 per cent) of respondents said they don’t expect a salary increase or promotion in the next 12 months. Indeed, roughly half (48 per cent) said they’ve considered leaving their company in the last six months to find better compensation, up from 41 per cent in 2022.
Read: A quarter of U.S. employers won’t or may not provide raises in 2024: survey
While 58 per cent of respondents reported feeling positively about their current compensation, nearly a quarter said they’re dissatisfied with their most recent salary increase. Women (27 per cent) were twice as likely as men (15 per cent) to feel frustrated with their compensation.
More than two-fifths (44 per cent) of respondents said they’d stick it out in a job even if they didn’t think the salary was high enough, while roughly a quarter said they’d take a pay cut for a more flexible working location (28 per cent) or if it meant they’d have job security for the next year (24 per cent).
However, nearly three-quarters (73 per cent) of employees admitted they’d consider leaving their current job for a higher paycheque. On average, it would take a 13.3 per cent pay increase to tempt an employee away from their current position, down roughly three per cent from in 2022.
Read: Pay transparency legislation spreading across U.S.
A majority (82 per cent) of employees said they consider some form of pay transparency essential when evaluating potential employers, up from 69 per cent in 2022. Indeed, 69 per cent of respondents felt comfortable discussing their salary with a coworker, with 52 per cent noting they’ve already engaged in such conversations. Generation Z (76 per cent) was most likely to have discussed salary with colleagues, followed by millennials (60 per cent), generation X (39 per cent) and baby boomers (30 per cent).
As well, a third (32 per cent) of respondents said in-office workers should be paid more than remote or hybrid workers, while only six per cent thought the opposite. Notably, 36 per cent of men said in-office workers should be paid more, compared to 28 per cent of women. More women (67 per cent) than men (56 per cent) believed both should be paid equally.
Read: Employees rank remote work, salary as top elements of benefits packages: survey