U.S. employers shelled out total compensation increases that averaged 4.1% and merit increases that averaged 3.8% in 2023 to remain competitive in a strong labor market.
This is according to Mercer’s “March 2023 U.S. Compensation Planning SurveyOpen in a new tab,” which noted that while the 2023 compensation increases are the largest employers have provided since the 2008 financial crisis, the increases fell slightly short of what employers were projecting during November 2022. READ MORE