by John M. Bremen
Forbes
After several years of aggressive salary growth combined with talent shortages, effective leaders around the world are now recalibrating their approaches in response to a shifting economic landscape.
What is happening with salary increases and talent shortages?
The December 2024 edition of WTW’s Global Salary Budget Planning Report suggests that salary increase budgets are stabilizing, with 2025 planned increases projected to be on average 3.7%, compared with 3.8% in 2024. Salary increases remain at a relatively high rate by historic standards (the pre-pandemic norm was 3%) amid higher total labor expenses (which include salaries, bonuses, variable pay and benefits costs). Overall, fewer organizations (36%) reported difficulty in attracting and retaining employees, down nine percentage points from last year and 17 percentage points from the year prior.