Average raise after 2 year of work

Fewer employers plan to give pay raises in 2024 than in 2023, according to SHRM. Even so, 79% of businesses plan to dole out pay raises.

To avoid losing your top employees, you might consider offering pay raises.

Learn about criteria for raises, when to give salary raises, and how to calculate a pay raise percentage.

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Criteria for a salary increase

Before handing out raises to employees, most employers create a list of salary increment criteria to establish a standard basis for salary increases.

Average salary increase over 10 years

This important HR process helps you decide between different types of pay raises.

Your basis for salary increase might depend on one or more of the following factors.

1. Cost of living raises

When inflation drives up the price of goods and services, currency has less value, and the cost of living increases.

Because the cost of living is always changing, the wages you offer your employees might, too.

You may offer a raise so your employees can keep up with increases in the cost of living. A cost of living raise is widespread among your team, regardless of performance.

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