“Our latest data indicates a moderation in base pay increases, reflecting the evolving dynamics of the labor market,” Lauren Mason, Mercer’s U.S. workforce solutions leader, said in a statement. “With heightened economic uncertainty, employers are focused on maximizing compensation impact through strategic decisions, such as proactively rewarding high performance.”

In the survey of more than 800 U.S. companies, employers said they expected to promote about 10% of their workforce, up from 8% the previous year, and to award an average raise of 8.5% with promotions. READ MORE