Employers budget less for pay raises

San Francisco While layoffs in the global tech industry continue unabated, employers in the US are planning to budget less for salary raises next year, according to a new report.

According to recent data from consulting firm Mercer, employers are planning to allocate 3.5 per cent of their compensation budgets to performance-based merit raises in 2024 -- down from 3.8 per cent for 2023, reports HR Brew.

Businesses are also planning to promote a smaller share of their workforce next year -- 8.7 per cent of their employee population compared to 10.3 per cent last year, the report noted.