while containing costs, including for labor, corporate bosses and compensation consultants say.
On average, employers are giving annual merit raises of 3.8% and total compensation increases of 4.1% in 2023—still the highest-reported raises in the survey since the 2008 financial crisis. Though business has slowed in her industry, Kayla Klopotek, 26, asked for a raise at the Madison, Wis., real-estate company where she works as a closing coordinator. Facing a 20% rent increase, she says she pushed for an increase that would cover her higher costs and provide a financial cushion. She made the case by citing her accomplishments, including three promotions within three years, along with her rising expenses.
Among the larger employers that Mercer surveys, base-pay raises have slowed, as the job market shows signs of cooling and a range of companies embark on layoffs. Increases in employee base pay rose an average 3.4% between October and March, down from 4.7% in between January and September of last year, according to Mercer.
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