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According to a recent Gartner Finance study, most corporate finance professionals will see their paychecks increase this year, but only slightly. Late last year, the firm surveyed 300 CFOs and other senior finance leaders about their budgets for employee compensation in 2025.
The good news is that only 2 percent of finance leaders plan to reduce average employee compensation in 2025. The bad news is that the proportion planning to increase salaries by more than 4 percent has fallen substantially for a third straight year.
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In Gartner’s autumn 2022 survey, 16 percent of CFOs reporting that they expected to raise average compensation by 10 percent or more in 2023, and more than two-thirds (70%) expected to raise compensation by 4 percent to 9 percent. This year, only 11 percent expect to raise average compensation by at least 10 percent, while half (50%) expect to give staff a bump in the 4 percent to 9 percent range. More than a third (37%) plan only a nominal change to employee compensation in 2025.
“The slowdown in pay increases reflects falling rates of inflation and lower levels of voluntary employee attrition,” says Randeep Rathindran, distinguished VP of research in the Gartner Finance practice. “However, even though the labor market is cooling, CFOs must balance the potential risks of attrition and low engagement as employees still face stubbornly high costs for household necessities.”
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