The State of U.S. Salaries and Raises
Indeed reports that overall wage growth is expected to be slow through 2019. Salary budgets are projected to grow by just 3.2%, a wage increase barely proportionate to the rising cost of living with the current inflation rate at 1.6%.
According to the 1,000 U.S. workers that Indeed surveyed, only 18% say their lives are “comfortable” with their current salaries. A majority (61%) say they would need at least $6,000 more to be truly “comfortable.” Despite wanting to earn more, 75% of respondents say they received a “change in pay” within the last two years.
State of Raises
The majority of respondents (85%) report their last raise was 6% or less, with 44% receiving 3% or less.
Of those, 53% say their raise was exactly what they expected. One-quarter of respondents say they received less than expected, and 15% say their raise was higher than their projection. Another 8% say they hadn’t expected a raise at all.
One-quarter of respondents say they will “definitely” ask for a raise in 2019, and 26% say asking for a raise is a possibility. Almost half (48%) say they do not plan on asking for a raise this year, but more than one-quarter (27%) of these respondents say it’s because they already received a pay raise.
Coveted Non-Compensation Perks
When asked what benefits workers would take in place of a pay increase, the most common response for women is flexible work hours (42%); for men, it’s more annual holiday leave (37%). The third most popular response is health care benefits, chosen by 34% of respondents overall. This is a reversal of last year’s top three substitutes, which were health care benefits (chosen by 36% of respondents last year), followed by flexible work hours (previously chosen by 35%) and more holiday leave (34%).
Are you compensating your employees enough to keep them in today's tight labor market?