With inflation continuing to impact salary and reward practices, many employers are broadening their pay strategies. But which actions are companies taking to meet these continued economic challenges? This survey captured company perspectives on challenges brought on by inflation — including salary increase revisions, merit increase budgeting, planning for salary or wage reviews and additional actions — during December of 2022.
At the time of this survey, 58% of companies around the world feel there will be significantly increased salary demands across all roles and skills. Among companies who reported factoring inflation into their 2023 merit budgets, 86% plan to do so for all employees across all levels and skill sets. As a result of heightened inflation, 43% of employers reported using benchmarks to determine increased compensation eligibility.