How Big Of A Raise Are You Expecting This Year
How big of a raise are you expecting this year? The pandemic caused economic uncertainty for many workers and businesses, but over the last two years, salaries soared as the economy recovered from Covid-19. Don’t start spending like crazy quite yet, it seems that employees’ expectations for raises in 2023 may be just a little too high.
According to ADP’s People at Work 2023 report, 68% of American workers received a pay increase over the last year, with an average increase of 6.5%. Despite this, employees are expecting an average 6.7% raise in 2023, which experts suggest is unrealistic given current economic conditions. Welcome to the club, Tampa Bay.
While some high-demand positions may still see significant raises, employers are dialing back on aggressive raises and bonuses due to economic uncertainty. The report also highlighted that many workers believe they are underpaid, with only 32% stating they were paid the right amount.
The survey also revealed the evolving remote work picture, with 33% of American workers having complete flexibility to work from home or the office when they choose, and 55% stating that their employer’s work-from-home policies meet their expectations. However, employees’ expectations for pay raises and bonuses in relation to remote work vary depending on whether they are working entirely from home or in a hybrid model. While the pandemic has shifted attitudes towards remote work, it is clear that workers’ expectations for pay raises may need to be tempered as economic uncertainty persists. TBBJ
