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Payscale's Salary Budget SurveyIn the 2024–2025 salary budgeting season, HR leadersand compensation professionals must determine theirpay increase strategy for the coming year. Payscale’s2024–2025 Salary Budget Survey (SBS) providesunparalleled insights on projected salary budgetsubmissions from 1,550 organizations collectedbetween May and June of 2024.Payscale’s Salary Budget Survey features insightfulanalysis of data sourced directly from compensationprofessionalsandbroken out by employee groups(non-exempt, exempt, managers, and executives),geographic segments, industry groups, andkey firmographics.This includes actual salary increases from 2024,planned salary increase budgets for 2025, and salarystructure increase budgets.The full Salary BudgetSurvey shows the breakdown of total salary budgetincreases byindustry group, sector, organization size,revenue, region, and individual state.Download the free reporthere. www.payscale.comSalary budget planning for 2025U.S. employers plan on 3.5percentsalary budget increases for2025. Canada employers plan on 3.3 percent increases.This is a decline from 3.6 percent and 3.4 percent respectivelyfor the pay increases employers actually gave in 2024 — a0.1percent decrease.The stabilization of inflation along with a loosening of labor marketconditions is likely what is leading to planned salary increasesdiminishing slightly. However, it should be noted that base payincreases are projected to remain higher than 3 percent, whichwas the average before the COVID-19 pandemic. 2 Do I have a clear understanding of our business objectives for 2025?Do I understand how we will connect these strategies to ourtalentobjectives?Does our 2025 salary budget recommendation support ourbusiness and talent objectives?Can I succinctly articulate how our salary budget recommendationconnects to our business and talent objectives?How to use salary budget planning as a strategic leverLooking ahead, compensation professionals should not only be focusing on salary budgetplanning but also preparing to elevate the strategic importance of this annual budgetingpractice. Compensation professionals play a crucial role in managing an organization’scompensation strategy and ensuring that it aligns with business goals, industry standards,and employee expectations.By creating a well-structured salary budget plan with a clear line to business objectives,compensation and HR professionals can help the organization allocate funds appropriately,ensuring that compensation expenses are in line with business goals and constraints.Before walking into the next salary budget review, compensation and HR professionals shouldask themselves:1234www.payscale.com Data is key for decision-makingEvery organization will approach salary budgetplanning uniquely. Whether that’s driven byindustry, talent availability, or total rewardsstrategies, salary budget data can help instructplanning recommendations and inform decisions.Get the Salary Budget Survey today toaccess insightful analysis sourced directlyfrom compensation professionals. 3 About PayscaleAs the industry leader in compensation management, Payscale is on a missionto help job seekers, employees, and businesses get pay right and makesustainable fair pay a reality. Empowering more than 50% of the Fortune 500 in198 countries, Payscale provides a combination of diverse and dynamic datasources, compensation services, and scalable software to enable organizationssuch as Angel City Football Club, Perry Ellis International, United Healthcare,Vista, and The Washington Post to make fair and appropriate pay decisions.Pay is powerful™To learn more, visitpayscale.com.