As we navigate through 2024, market uncertainty remains a significant challenge for businesses and employees alike. The economic landscape is characterized by fluctuating markets, geopolitical tensions, and the lingering effects of the pandemic.

This environment of unpredictability has had profound implications on salaries and promotions, and which companies compensate and advance their workforce.

Stagnation and Modest Salary Increases

One of the most notable impacts of market uncertainty is the stagnation of salaries. Many companies are adopting a cautious approach to financial commitments, opting for modest salary increases or, in some cases, freezing wages altogether.

Mercer’s survey found that U.S. employers are forecasting average merit increases of just 3.5% and total salary budget increases of 3.8% for 2024. For employees, this means that expectations for significant raises may need to be tempered, at least in the short term.

However, it is certainly not all bleak.

Certain sectors, particularly those that have demonstrated resilience or growth during uncertain times, such as technology, healthcare, and sales, continue to offer extremely competitive salary packages. In these industries, the demand for skilled professionals remains high, and companies are willing to invest.

Big Salary Raises Come with Proof

In 2024, given continued economic uncertainty, CEO actual and target total direct compensation (TDC) for S&P 500 companies is expected to increase in the low single digits. The average bonus for employees in the US is 9.6% of salary, with typical bonus amounts ranging from 1% to 15% based on individual and team performance metrics.

Employees who want better than average salary and bonuses must focus on demonstrating their impact, continuously upskilling, and aligning their efforts with the company’s strategic priorities.

Those who can adapt to changing circumstances and contribute to the company’s resilience are more likely to see positive outcomes in terms of compensation and career progression.

Flexible and Non-Monetary Benefits

To offset the constraints on salary increases and promotions, many companies are enhancing their flexible and non-monetary benefits. These can include options such as remote work, flexible hours, professional development opportunities, and enhanced wellness programs.

By offering these benefits, businesses aim to maintain employee satisfaction and retention.

Conclusion

Market uncertainty in 2024 continues to shape the landscape of salaries and promotions. While businesses are adopting cautious financial strategies, there are still opportunities for employees to advance and thrive.

In these uncertain times, hiring great people remains important. Tamarack Recruiting can help you find the talent that will drive your business forward, ensuring you have the right team to navigate the complexities of 2024 and beyond.