Thank you to CO–U.S. Chamber of Commerce for providing the content Employee Raises: How to Decide How Much to Give.
Employee raises are on the rise as cost of living and inflation increase.
It’s customary for businesses of all sizes to give employee raises, not only to reward hard work but also to help keep up with increases in the cost of living. And this year, inflation is causing many employees to proactively ask for higher salaries. Business owners need to think seriously about how much to give when allocating raises, since pay increases impact your payroll and your bottom line.
Benchmark against national trends
Nationally, raises are on the rise. This is a good benchmark to keep in mind as you seek to retain great employees, recruit new ones, and stay competitive in your market. A recent survey from Salary.com found that this year, a median raise of 4% across all employee categories has become the norm, replacing the long predominant 3% raise.
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CO–by the U.S. Chamber of Commerce.
