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MRA’s Annual Benchmark Compensation Survey Shows Increased Cost of Wages Is Employers’ Greatest Concerns
MILWAUKEE, WI (May 21, 2024)—While recruiting has remained a steady challenge over the past year, the increased cost of wages ranks as the top concern for employers, according to MRA’s 2024 Benchmark Compensation Survey. MRA produces its Benchmark Compensation Survey each year to provide information to help organizations set themselves up for success with their employees.
Workforce reductions, hiring freezes, budget constraints, talent acquisition, artificial intelligence (AI), and more continue to impact employers; MRA’s Benchmark Compensation Survey reveals areas where organizations can be proactive and succeed in today’s competitive talent market.
Survey results show that the challenge to recruit has remained steady, with some employee groups seeing the difficulty easing just slightly by a percentage point or two. Consistent with previous years, the employee groups that saw the most challenge to recruit were technical (72%) and leadership (69%) positions. Office clerical employees are the least challenging to recruit, with only 30% responding that it was very to somewhat difficult to recruit these employees.
“A well-crafted total rewards package can be a differentiator for top talent and can help foster long-term talent development and organizational success,” said Mackenzie Button, Total Rewards Director. “While total rewards are much more than compensation alone, base pay still remains the most significant commitment an organization makes to employees. This is also why organizations should consistently review and understand their compensation strategy, as well as their competitors.”
Total rewards packages often include compensation, stock options, health insurance, dental and vision benefits, retirement contributions, life insurance, paid time off, and more.
In addition to attracting top talent with competitive wages, the cost of benefits has also steadily risen over the past year. According to this year’s survey, the top employer issues include:
- Increased cost of wages (82%)
- Increased cost of benefits (80%)
- Recruiting a sufficient number of qualified candidates (76%)
“Managing total rewards has become a balancing act as organizations seek to provide attractive benefits while maintaining fiscal responsibility,” added Button. “By remaining responsive to employees' evolving needs and expectations, organizations create a workplace environment that attracts and retains employees while helping to drive long-term success and growth.”
MRA suggests overcoming professional recruiting challenges by leveraging diverse sourcing, fostering a positive work environment, and providing professional growth and development, which are essential to a successful talent management strategy. In addition, organizations can manage turnover costs by retaining current workers and implementing various strategies such as regular feedback, recognition, career development, and flexible work arrangements to also help retain current employees.
MRA also recommends identifying and developing emerging leaders to address talent shortages, build a robust leadership pipeline, and position the organization and its employees for long-term success.
“When done correctly, an emerging leader program can offer opportunities for identifying, developing, and retaining talented employees who have the potential to become future leaders within your organization,” said Courtney Lamers, Senior Manager, Member Engagement, and Intern Leadership program manager.
MRA’s 2024 Benchmark Compensation Survey included 1,352 participating organizations and surveyed 476 jobs for base salary percent increases, providing more than 50,000 data points on employee compensation research. The survey was conducted from January to February 2024.
To obtain a copy of MRA’s full 2024 Benchmark Compensation Survey, contact the Surveys team at 800.488.4845 ext. 3508
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About MRA—The Management Association: Founded in 1901, MRA is a nonprofit employer association that serves 5,000 employers, covering more than 1 million employees worldwide. As the largest employer association in the nation, MRA helps its members thrive by offering comprehensive HR services, talent management, learning and development opportunities, and total rewards planning. MRA helps organizations build a successful workplace and a powerful workforce. Headquartered in Wisconsin, MRA has regional offices in Iowa, Illinois, Minnesota, and Ohio. To learn more about MRA, visit www.mranet.org.
