Dive Brief:
- Seventy-one percent of senior finance leaders plan to give raises of at least 4% in 2024, outpacing inflation in most areas, according to the results of a survey by Gartner, Inc., which were released March 20. The majority (58%) said they intended to raise compensation by between 4% and 9% this year.
- Compensation ranked second among the areas where leaders said they planned to increase budgets this year, beaten only by technology investments, which were a priority for 82% of the 296 CFOs and senior finance leaders surveyed in December. However, fewer leaders intended to award raises of 10% or more, the survey found.
- “Even with tighter economic policy and pressure from boards and investors on profitable growth and employee productivity, CFOs are outpacing inflation that has now almost returned to a neutral rate below 3%,” Alexander Bant, chief of research in the Gartner finance practice, said in a statement. “The fact that most CFOs are planning for pay growth that exceeds the level of inflation indicates how tight the labor market is right now and how important it is to find and retain top talent.”
Dive Insight:
The sentiments expressed in the Gartner finance survey, however, contrast with the results of recent worker surveys.
Fifty-three percent of U.S. adults said their paycheck isn’t keeping up with inflation, according to survey results released last month by the American Staffing Association and The Harris Poll. Of the nearly 2,100 people surveyed, 38% said their financial position is more stressful than it was a year ago.
And, in January, job search site Monster’s 2024 Work Watch Report found that 81% of workers said their current wage hasn’t kept up with the cost of living. Relatedly, an Eagle Hill Consulting analysis predicted that retention would be a particular challenge for employers in the first half of 2024, with more workers projected to quit from January through June.
But workers who felt cared for by their employers are 60% more likely to plan to stay at their current organization for the next year, according to the recent results of financial services company MetLife’s 22nd Annual U.S. Employee Benefit Trends Study.