Biggest Pay Raise In 15 Years?! What To Expect With Salary Raises In 2023

compensation strategies pay raises salary increases Aug 03, 2022
2023 Pay Raise

The tight labor market the US is currently experiencing has prompted employers to budget big pay raises for 2023. While the average is projected to be about 4.1%, data shows that this would be the most significant pay increase in the past 15 years. So, what are the reasons behind these projections, and what does this entail for small businesses?

We've already mentioned the tight labor market as the main reason employers want to increase salaries. In the wake of The Great Resignation, employees are searching for jobs with higher pay, so employers are looking at raises as a strategy to attract the best talent and remain competitive in 2023.

However, another crucial aspect of why salary increases are expected next year is the impending inflation and the rising costs of housing, gas, food, and healthcare. From June of this year, the CPI jumped to 9.1%, so an increase of 4.1% still won't be enough for many employees to get ahead.

While employers should find ways to offset inflation, you might not be able to cover additional compensation expenses as a small business owner. The good news is that there are still several ways you can improve the employee experience and reward your team members - providing workplace flexibility is a big one, as we recently discussed in this episode.

Do you want to learn more?

Don't miss this week's episode of 'While We Were Working'!

Sommer and Joey discuss why pay raise should be a part of your executive strategy for 2023, how to identify a fair pay raise, and best practices in communicating pay increases with your employees.

Joey and Sommer also explore the benefits and hazards of remote work. While workplace flexibility it's a fantastic employee engagement strategy, letting your employees work from anywhere can also pose severe threats to your business. Tune in to learn how to create a solid work remote policy that benefits your team and protects your business!

Additional Resources

📰 Article in question: 

https://hrexecutive.com/employers-budgeting-big-pay-raises-for-2023/

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Hosts: Joey Price and Sommer Ketron

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