Marsh & McLennan Companies Inc (MMC, Financial), through its business unit Mercer, has published the findings of the November 2024 Mercer QuickPulse™ US Compensation Planning Survey. The survey, which gathered insights from over 850 US organizations, reveals that employers are planning to increase their compensation budgets by 3.3% for merit increases and 3.7% for total salary increases for non-unionized employees in 2025. These figures align closely with the actual increases seen in 2024, indicating a continued focus on talent investment despite economic challenges. The press release was issued on November 2024.
Positive Aspects
- Employers are maintaining a focus on talent investment with planned salary increases above historical trends.
- There is a growing emphasis on pay transparency, with 18% of companies sharing pay ranges and 27% considering it.
- Promotion rates are expected to rise, with 9.3% of employees anticipated to be promoted in 2025.
Negative Aspects
- Employee satisfaction with fair pay is reportedly declining despite increased investment in compensation.
- 80% of employers have not yet finalized their compensation budgets, indicating potential uncertainty.
- Industry variations show that some sectors, like healthcare services, are planning below-average compensation increases.
Financial Analyst Perspective
From a financial analyst's viewpoint, Marsh & McLennan's survey results suggest a stable yet cautious approach to compensation planning. The alignment of 2025 projections with 2024 actuals indicates a conservative strategy amidst economic uncertainties. The focus on pay transparency and equity could potentially mitigate risks associated with employee dissatisfaction and turnover, which are critical for maintaining operational efficiency and cost management.
Market Research Analyst Perspective
As a market research analyst, the survey highlights key trends in workforce management, particularly the emphasis on talent retention through competitive compensation and promotion strategies. The data suggests that companies are adapting to a tight labor market by enhancing employee experience and engagement. The industry-specific insights provide valuable benchmarks for organizations to assess their compensation strategies relative to peers.
Frequently Asked Questions
What are the planned salary increases for 2025?
Employers plan to raise compensation budgets by 3.3% for merit increases and 3.7% for total salary increases.
How many companies are sharing pay ranges with employees?
18% of companies are currently sharing pay ranges, with another 27% considering this action.
What is the expected promotion rate for 2025?
Employers plan to promote 9.3% of employees in 2025, up from 8% in 2024.
Are there any industry-specific trends noted in the survey?
Yes, the technology sector reported above-average compensation budgets, while the healthcare services industry reported below-average increases.
Read the original press release here.
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