Salary Budget Forecast: XpertHR 2020 Survey
XpertHR's salary budgets survey shows a stable picture of pay increases as we head into 2020.
As organizations start preparing for their 2020 pay reviews, XpertHR has conducted a survey of 242 organizations to investigate the level of increases planned and the factors influencing them.
A competitive job market and low inflation rates continue to strongly impact employers' decisions about salary and pay.
- Across all industries and workforce sizes, employers report that they expect to offer the same salary increase levels in 2020 as in 2019.
- The average pay increase expected is 3.45%, with a median of 3%.
- The key factors pushing salaries upward are the organization's ability to pay, retention and recruitment. Those that place downward pressure on salaries include health care costs, other benefit costs and the ability or inability to raise prices on the business's products and services.
- Survey respondents shared that when they do make salary increases outside of the annual salary review, it is most often due to promotion (78.5%), and to address retention (59.9%) and recruitment issues (51.2%).