MILWAUKEE, WI (September 6, 2023) – According to MRA’s newly released 2023 Compensation Trends Survey, organizations report that the economic outlook for 2024 is stabilizing. MRA’s report shows that 79% of organizations say the economy will improve or stay the same, compared to 60% in 2022.
MRA’s survey results show that organizations believe the economic outlook over the next 12 months will:
|
|
Improve |
Stay the Same |
Decline |
|
Global Economy |
14% |
68% |
18% |
|
U.S. Economy |
22% |
57% |
21% |
|
State Economy |
22% |
63% |
16% |
Adding to the optimism, organizations indicate that the projected outlook for 2024 includes a 65% increase in sales/revenue. Statewide sales projections are even higher.
“This is a welcome report for business leaders,” said Jim Morgan, MRA Vice President, Business Development & Workforce Strategies. “The economic instability that we have seen over the past two years has made longer-term planning troublesome for employers, especially when it came to adding staff. If there is one thing that disrupts business, it is uncertainty and we have had plenty of it in the economic climate, inflation, changing labor markets, employee expectations, compensation trends, and job market dynamics. This optimism is refreshing.”
Ninety-five percent of survey respondents gave pay increases in the last 12 months. Respondents who provided increases over the last 12 months reported issuing an average 4.5% increase.
“These increases are also not sustainable. Organizations are finding ways to bolster employees’ total compensation beyond pay,” said Morgan.
One of the most common solutions is variable or incentive pay. In the last 12 months, 70% of organizations provided their employees with some variable pay, miscellaneous benefits, or perks. Some of the more popular variable pay options offered include:
- Employee referral bonus (74%)
- Individual incentive bonus (53%)
- Spot bonus or other discretionary bonus (50%)
Looking at additional perks, organizations will offer in the next 12 months, the top three are:
- Employee lunches (64%)
- Tuition assistance (64%)
- Flexible work schedules (63%)
Within the next 12 months, 94% of organizations will provide pay increases. Projected base pay increases will be at an average of 3.8% across the various employee groups.
“Pay increases are more than just numbers on a paycheck,” added Morgan. “They are a tangible recognition of an employee’s overall contribution. It acknowledges hard work and communicates a strong message of appreciation and value. It boosts morale and contributes to a positive experience.
“Today’s recruitment and retention challenges will remain, but employers can make significant strides in employee satisfaction by elevating the total employee experience.”
“Creating a distinctive total rewards package also will set employers apart. A positive experience enhances engagement and ignites a genuine commitment,” added Mackenzie Button, MRA Total Rewards Director. “Find what resonates with your employees. Understanding and meeting the unique needs of your workforce is key.”
Recent legislative shifts and growing awareness have also brought pay transparency to the forefront. Pay transparency can ensure competitive pay and foster a culture of trust and engagement. Beyond meeting legal requirements, it signifies a commitment to equitable practice and empowers employees to make more informed career decisions. Transparency impacts talent attraction and retention.
“Our 2023 Compensation Survey reveals that combining various pay practices, offering pay transparency, and providing a comprehensive total rewards package can help organizations excel and be an employer of choice, leading to success in 2024,” said Melissa Wymer, Manager, MRA Surveys.
MRA’s Compensation Trends survey was conducted June-July 2023 and included 43 questions. For more information or to receive a more detailed copy of MRA’s 2023 Compensation Trends Survey, contact the Survey Department at 800.488.4845 ext. 3508 or email at [email protected].
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About MRA—The Management Association: Founded in 1901, MRA is a nonprofit employer association that serves 4,500 employers, covering more than 1 million employees worldwide. As the largest employer association in the nation, MRA helps its members thrive by offering comprehensive HR services, talent management, learning and organization development opportunities, and total rewards planning. MRA helps organizations build a successful workplace and powerful workforce. Headquartered in Wisconsin, MRA has regional offices in Iowa, Illinois, Minnesota and Ohio. To learn more about MRA, visit www.mranet.org.
