Raises Are Still Stuck at 3 Percent, Employers Tell PayScale
- Two-thirds of companies surveyed cite fears of retention
- Companies look to bonuses and benefits to keep workers around
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For all companies bemoan the tight labor market, they’re stopping short of a reliable reward for stalwart employees: a generous raise. A recent PayScale survey of over 7,000 employers found that 70 percent of companies are sticking with increases of 3 percent or less.
“It can be disappointing to feel like you’re constantly getting a 2 or 3 percent bump that barely feels like it’s keeping pace with inflation,” said Lydia Frank, the VP of Content at PayScale. “Especially when we’re in a robust economy and talent market.”