Inflation, War for Talent Spark Highest Salary Hikes Since 2007: Survey

Companies plan to boost salaries 4.6% for next year, up from earlier expectations and an increase over their budget for this year, as inflation and a resilient labor market have sent business scrambling to sweeten pay or risk losing their best people.

Overall salary increases in the US will be the most since 2007, a survey of 1.550 organizations from workplace consultant Willis Towers Watson (WTW) found, and above the 4.2% increase for this year. A similar WTW survey conducted earlier in the year saw just a 4.1% increase for 2023. Seven out of ten companies have spent more than they had planned on pay adjustments over the past year — mid-year salary hikes have gone from rare to commonplace — and some firms are responding by jacking up their own prices or reducing headcount.