Planning for payroll and salary management issues in 2024 is a bit unpredictable, but there are some emerging trends to guide you as the new year dawns.

To stay ahead, employers need to be prepared to pay competitively for top talent, offer raises to retain high performers, provide pay transparency, and offer or continue to offer remote and hybrid work options if possible.

Trends to Look for in 2024 for Payroll

You Get – and Get to Keep – What You Pay For

Though the job market picture has shifted slightly, it’s still candidate-driven. Higher inflation is among the factors driving workers to demand higher salaries, whether that means accepting an initial offer or negotiating a raise. In many cases, employees won’t hesitate to find another job if this doesn’t happen.

• Recent surveys report that U.S. employers plan to raise compensation budgets for next year by anywhere from 3.5 percent to 4.1 percent. This reflects a trend showing pay increase levels declining slightly but still well above those from before the global pandemic. It’s evident that the market is still tight, and unemployment levels are still low.

Embrace Salary Transparency

By including salary information in your job postings, you’re likely to attract more qualified candidates – even if this means making pay adjustments across the board.

A lack of pay transparency may give rise to doubt, suspicion, gossip, or resentment among team members, ultimately resulting in a toxic work environment. By comparison, with transparency in place, employees are motivated to work harder as they feel trusted and valued. Examine your business goals to see how it might work for you.

Flexible Work is Still a Leading Priority

Especially among working parents and younger employees – but certainly not limited to these demographics – many employees prefer remote or hybrid work. In fact, this also can be a driver in accepting or staying at a job.

• There are benefits for employers, too, ranging from lower absenteeism and operating costs to greater diversity and a decreased carbon footprint.  

Managing payroll and keeping abreast of the constantly changing business landscape is an ongoing challenge. In uncertain economic times, it becomes even more critical as you not only try to handle it all from an administrative and compliance end but also hire and retain the best talent.

Reign in the New Year with Key HR!

2024 may be your year to join forces with a trusted business partner like KeyHR. We are aligned with preferred provider companies to offer innovative ways of meeting the payroll for clients, salary management, employee leasing, benefits, and related HR needs. Contact us today to learn more.