The Future of Compensation: Insights from the 2024 HR DataHub Pay Survey

Pay trends have been significantly impacted over the past few years by rising inflation and economic downturns.?

As a result, wages are struggling to keep up with the rising cost of living.

Companies are facing greater pressure to set appropriate compensation strategies, while managing tighter margins and increased competition.?

Here at HR Datahub we conducted a pay survey with almost 150 companies, spanning 15 sectors.?

Their responses build a comprehensive view of the most significant factors impacting pay budgets.

By monitoring salary trends and anticipating how pay has evolved, and will continue to evolve, your business can set the right compensation levels to succeed.

Webinar, Slides, and report

We held a webinar last week with over 100 companies attending.

View on-demand HERE .

If you would like a copy of the slides then email me [email protected]

The full report will be ready in a few days, to get your copy when ready email me [email protected]

Summary

● After a volatile few years of pay trends, 2024 appears on track to be more settled

● The average actual pay increases across all sectors has grown from 2% in 2021 to 5% in 2023.

● The 2024 forecast pay increase for negotiated and non negotiated roles is 5% - the same as 2023 but companies providing increases higher than this is now more unlikely

● There is little differentiation in 2024 pay increase budgets across industries

● The number one strategic priority for businesses is attracting talent - across every single sector

● 18% of companies currently pay salaries above market with another 52% considering

● Around 15% of companies offer above market bonus but this may change in 2024

● 22% of companies provide a retention bonus and 23% provide a sign on bonus for certain roles - around a a third of companies are considering implementing something for 2024

● A major focus for 2024 is retention; including investing more in staff development and funding accreditation and training

● Very little work is planned for workplace changes as most of this work has been completed post covid

● Reviewing benefits to attract and retain talent is an emerging trend in 2024, with companies planning to enhance the benefits they already offer

Pay Increase Budgets

• At the Median Pay Budgets are set to be unchanged at 5% from 2023 to 2024

• However, we will see less extreme increases with the UQ dropping from 6% to 5%

• Increases were still significantly lower than CPI in 2022 and 2023 but will be higher in 2024

Real Market Movement with Pay Tracker LIVE

• In November our Pay Tracker LIVE tool will be updated to include movements in pay for any role

• This will provide an additional datapoint when reviewing 2024 budgets

• This may help to be more precise in how you build and apply the budget
• Get your free trial access by emailing [email protected] and quoting this newsletter

Offer Above Market Pay to attract talent

• Overall just 18% of companies are offering above market pay but 52% are considering

• Aerospace is by far the highest at 40% currently offering above market pay when needed

• The lowest is in charity and manufacturing

Offer Sign on bonus

• Overall 23% of companies are offering a sign on bonus for certain roles with 36%? considering

• Aerospace is by far the highest at 40% followed by transport and energy

• The lowest is in retail and construction where 0% offer a sign on bonus

Offer Enhanced Perks to attract/retain talent

• Overall 68% have enhanced perks? in place with only 10% not considering

• Hospitality and retail provide the highest levels of perks?

• The lowest is in charity and health

• Many of the sectors will be implementing in the next 12 months

Financial Wellbeing

• Pension advice, financial education and financial wellbeing platform are the most popular with almost half the respondents reporting

• Pay Advance or payday loans are the lowest at just 7%

• Financial education is most likely to be introduced in the next 12 months

2024 HR Strategy

• No surprise that attracting talent is the most important driver of HR strategy in 2024

• Great to still see D&I in the top three

• Changing workforce is last - most of the work was done post covid and is now more settled

• We may have expected to see engagement higher