ARTICLE · 23 SEPTEMBER 2024

Practicing Innovation To Counter Declining Pay Increase Budgets

WTW

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Effective leaders are innovating pay programs by tailoring compensation strategies to workforce needs, engaging stakeholders, and adopting creative, non-traditional incentives. This approach improves employee engagement and retention amid skill shortages and fluctuating salary increases globally.

United KingdomEmployment and HR

When considering alternatives to traditional pay programs, effective leaders understand labor markets, involve stakeholders and work to tailor the best fit for specific workforces.

In response to our article on declining salary increase rates in 2024, Will pay increases exceed inflation in 2024?, additional questions have arisen regarding what effective leaders can do that's "out of the box" to maintain employee productivity and engagement amid skill and labor shortages in many areas.

WTW's recent 2024 Global Salary Budget Planning Report reveals movement in salary budgets around the world during the second half of the year. As WTW's Russ Wakelin reported, actual 2024 salary increases are lower than planned in many countries, and 2025 planned increases are lower than 2024 increases.

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