WorldatWork Survey finds 70% of organizations are taking
action on pay equity.
SCOTTSDALE, Ariz., Aug. 1, 2024
/PRNewswire/ -- A year ago, participants in WorldatWork's 2023-2024
Salary Budget Survey predicted a decline in salary increase budgets
for 2024 across most of the world. Most countries indeed
experienced a drop in 2024 salary increase budgets compared to
2023, often exceeding the forecast. Projections for 2025 suggest
further contraction of salary increase budgets is expected in 2025
in almost all surveyed countries according to WorldatWork's
51st annual Salary Budget Survey. WorldatWork, the Total
Rewards association, is the leading provider of comprehensive
compensation data and insights. The 2024-2025 Salary Budget Survey,
covering nearly 17 million employees from 22 countries, reports
detailed information about actual base salary increase and merit
budgets for 2024 and projections for 2025.
After forecasting that average overall salary increase budgets
would drop to 4.1% this year, U.S. respondents reported that
average overall salary increase budgets fell from 4.4% in 2023 to
3.9% this year. They foresee a slight additional decline in 2025 to
a 3.8% average budget. In addition to contracting salary increase
budgets, this year's study also revealed that in the U.S. the
reported range of salary increase budget amounts is consolidating.
2024 data show fewer extreme budgets, low or high, than in recent
years. And within the U.S. and Canada, geographic variation is
modest.
WorldatWork's Salary Budget Survey is the longest-running survey
of its kind. It is a key resource for Total Rewards and HR
professionals and their C-suite partners. With year-over-year data,
decision-makers can devise competitive compensation strategies and
comprehensive rewards systems to help attract and retain
high-caliber employees.
An easy-to-use Online Reporting Tool facilitates tailored
reporting based on industry, organization size and/or geographic
region (within the U.S. and Canada), helping compensation, Total Rewards,
and HR professionals prepare informed salary budget recommendations
for their organizations. The Online Reporting Tool allows you to
better understand the complex interrelationships of geography,
organization size, industry, and workforce composition to develop
the best recommendations for your organization.
"Organizations of all kinds, from government entities to global
multi-nationals to mid- and large-market enterprises to small
businesses, rely on this annual survey to benchmark and plan salary
increase budgets that will sustain the workforces they need," said
Sue Holloway, Director, WorldatWork.
"This study reveals that compensation professionals have a nuanced
grasp of the factors impacting salary budgets. They were able to
foresee the decline in salary increase budgets that we've observed
this year. We look forward to continuing to support Total Rewards
pros as they leverage data and think strategically to formulate
2025 compensation budget recommendations and negotiate with
CFOs."
Report Highlights:
- Additional countries included in 2024: New to this
year's study are data from the Gulf Cooperation Council (GCC)
countries, South Africa,
South Korea, and Vietnam.
- New industry data for Pharma. For the first time this
year, data are available for Pharma as a standalone industry.
- Organizations are taking action on equity. Across the
U.S., Canada, the UK, and
India, the majority of
organizations anticipate making pay adjustments to remediate pay
equity issues in 2025. These adjustments may include both those
required to maintain internal equity among employees as well as
those needed to resolve unwarranted differences in pay between
different groups of workers.
- Canadian salary increase budgets came in at predicted levels
in 2024. After correctly predicting that 2024 salary increase
budgets in Canada would average
3.9%, Canadian HR pros anticipate a slight additional decline in
2025 to 3.7%
- India's substantial
increase budgets. India again shows the largest average salary
increase budget in the survey, averaging 9.6% for 2024. This
figure, matching last year's prediction for 2024 is a four-tenths
decrease from last year's average of 10%.
- UK salary structure adjustments slow in 2024 but exceed
predictions. Coming in at 4.3% in 2024, salary increase budgets
in the UK came in at the level projected by participants in last
year's Salary Budget Survey, but salary structure
adjustments slightly exceeded predictions. Nonetheless, 2024
structure adjustments, averaging 3.1% in 2024, are lower than 2023
adjustments and are projected to decline further in 2025.
Methodology:
WorldatWork collected survey data for the "2024-2025 Salary Budget
Survey" from April 8, 2024, to
June 15, 2024. The survey was
completed by 2,249 organizations, many of which reported data for
multiple countries, resulting in 6,536 unique survey
responses. Members were asked to respond for the U.S. and 24 other
countries: Australia, Belgium, Brazil, Canada, China, France, GCC Countries, Germany, India, Italy,
Japan, Mexico, Netherlands, New
Zealand, Nigeria,
Russia, Singapore, South
Africa, South Korea,
Spain, Sweden, Switzerland, the United Kingdom, the
United States, and Vietnam.
(Insufficient responses were received in 2024 to report data from
New Zealand, Nigeria, or Russia.)
About WorldatWork:
WorldatWork is the leading global nonprofit association for
professionals engaged in the critically important practice of Total
Rewards. We serve those who are responsible for cultivating
inspired, engaged, productive, and committed workers in effective
and rewarding workplaces. We guide them in the design and delivery
of Total Rewards programs with our membership, education,
certification, idea exchange, thought leadership, knowledge
creation, information sharing, research, and networking. For more
than 65 years, WorldatWork has served Total Rewards professionals
throughout the world working in organizations of all sizes and
structures. Professionals from more than 93% of Fortune 500®
organizations rely on WorldatWork for Total Rewards
solutions.
Media Contact:
Diana Adkins
480-304-6860
381215@email4pr.com
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SOURCE WorldatWork