Troy, MI – August 29, 2023 --- ASE, employers trusted partner for Everything HR, has released its 2023-2024 Salary Budget Survey. The survey analyzes both present and anticipated trends in salary budgets, pay structure modifications, and incentive-based compensation programs provided by employers.
The results indicate that the average effective total increase budget for 2023 stood at 4.5% encompassing all categories of employees, signifying a 0.4% increase compared to the previous year’s figures. Non-exempt, hourly, nonunion employees saw the highest increases at 5.1% in contrast to 4.5% in 2022.
As businesses navigate evolving challenges, a shroud of uncertainty envelops budget projections for the upcoming year, 2024. Specifically, the data shows that out of the 164 companies surveyed, half (50%) of them have yet to actively discuss salary adjustment options for next year.
Highlights of the ASE 2023-2024 Salary Budget Survey include:
- In the previous 12 months, 69% of employers made market adjustments to remain competitive in the market. This market adjustment in compensation refers to an unscheduled change in an employee's pay, made outside of the regular review cycle, often prompted by factors like retention needs, market shifts, exceptional accomplishments, or equity considerations.
- The survey results suggest that most market adjustments were provided to specific individuals (69%) or specific positions (53%).
- Average total increase budgets (i.e., any combination of merit, general or other increases) for 2023 were:
- 5.1% (Non-exempt, Hourly, Nonunion)
- 4.1% (Non-exempt, Salaried)
- 4.2% (Exempt, Salaried)
- 4.5% (Officers/Executives)
- Average projected total increase budgets for 2024 are:
- 4.7% (Non-exempt, Hourly, Nonunion)
- 3.6% (Non-exempt, Salaried)
- 3.7% (Exempt, Salaried)
- 3.6% (Officers/Executives)
- The average pay increase percentage for top performers in 2023 was 5.4%.
The survey results were announced by ASE President & CEO Mary E. Corrado, “While we have seen larger increases than in years past, recent economic conditions appear to be resulting in some cautiousness among employers. That said, talent shortages in specific areas will likely keep wage pressures alive as employers seek to attract and retain valuable talent.”
Background information on the ASE 2023-2024 Salary Budget Survey:
164 organizations participated. Organizations with 1-100 employees made up approximately 45% of the survey sample, while organizations with between 101-499 employees represented nearly 38% of the sample. The remaining 17% of the sample came from organizations with more than 500 employees. A variety of industries have been represented in the survey, with durable goods manufacturing (42.1%) leading the pack. Trades and services (22%) were the second-largest industry representation.
Full survey results are available free of charge to ASE members. Non-members can purchase the full report for $825. Request to purchase here.
About ASE
ASE is employers trusted partner for Everything HR. ASE is a non-profit, membership organization – everything we do is based on the needs of members and to drive the success of their organizations and help them THRIVE. ASE strengthens organization's HR departments by offering member benefits and discounted services that span the entire employee lifecycle including recruitment, development, and retention while minimizing compliance risk. We provide our members guidance through new legislation and workplace issues such as those that occurred with the COVID-19 pandemic. Learn more about ASE at www.aseonline.org.
