Many companies are ditching annual raises in 2023. But it's not all bad news. - Phoenix Business Journal

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More companies are doing away with annual raises in 2023 — but not because of the economy

That's part of the good news. The bad news? The data suggests companies are pulling back from the aggressive raises of 2021 and 2022 — exactly as experts had forecasted.

Companies continue to have turnover at the top of mind when it comes to pay strategy — with 60% of organizations noting they've had more difficulty attracting talent and retaining talent in 2022 than in previous years even as voluntarily turnover in their organizations has fallen from 36% to 25%. “This year’s report showcases how a decline in voluntary turnover and news of a potential recession conflict with low unemployment rates and a continued struggle to attract and retain talent,” said Lexi Clarke, vice president of people at Payscale in a press release announcing the findings. “We are on the other side of the ‘Great Resignation’ and employees are thinking twice before leaving their current jobs, but they still have higher expectations for the employee experience.

 

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