As the end of 2024 approaches, many employees are curious about salary increases. Whether you’re hoping for a raise or conducting financial planning, understanding the average raise percentage can help set realistic expectations. Here’s what to know about salary trends for 2024 and how to use this information.
What Is the Average Raise Percentage for 2024?
The average raise percentage for 2024 is projected to be around 3% to 4%. Driven by inflation, labor market conditions, and increased competition for talent, this is slightly higher than in recent years. Companies are also aiming to retain employees by offering better compensation packages, including annual raises.
While the average increase is 3% to 4%, your raise can vary. Factors like industry, company performance, and individual contributions play a role.
Factors Affecting Average Raise Percentage
Industry Trends
Different industries have different raise benchmarks. For instance, technology and healthcare roles may see higher salary increases.Company Performance
A company’s financial health affects salary raises. If your company had a good year, raises may be higher. But if the company is cutting costs, raises may be lower or none at all.Inflation and Cost of Living Adjustments
Inflation often drives salary increases. Employers adjust salaries to keep up with rising costs. Higher inflation rates in 2024 may push companies to offer larger raises to meet employee expectations.Individual Performance
Your performance plays a key role in determining your raise. High performers often receive above-average increases, while average or low performers might get less.Market Demand for Skills
In-demand roles, like IT or data analysis, may see larger salary bumps. If your skill set is in high demand, you have more negotiation power.
How to Prepare for Your 2024 Salary Review
As we approach open enrollment and end-of-year reviews, now is the time to start thinking about your raise. Here are four steps to help you get ready:
- Review Your Performance
Take a close look at your performance this year. Did you meet or exceed expectations? Have you taken on new responsibilities? Document your achievements to discuss during your review.
- Research Industry Standards
Find out the average salary increases for your industry. This will help you set realistic expectations. Websites like Glassdoor or Payscale offer useful salary data by role and industry.
- Prepare for Negotiation
If you believe you deserve more than the average raise, be ready to make your case. Highlight your contributions and how they’ve impacted the company. Be confident and open to negotiation.
- Ask About Cost of Living Adjustments
If your employer hasn’t accounted for cost of living adjustments in 2024, raise the issue during your salary review. Inflation has impacted prices, so this is a reasonable discussion point.
