2022 Salary Increase Budgets

OWNERSHIP

Nonprofit Private Equity Backed/Owned Privately Held Publicly Traded All For-Profit Organizations

Average

Median

BDO'S TAKE

Private equity backed/owned and privately held organizations reported higher average salary increase budgets compared to nonprofit and publicly traded organizations. This may be in large part because private companies are seemingly more nimble in responding to market forces. Additionally, nonprofit and publicly traded organizations’ employment practices may be subject to greater scrutiny, involving lengthy review and approval processes, or even authorization from boards and other stakeholders.

3.81%

4.73%

4.72%

3.95%

4.58%

4.00%

3.50%

4.00%

3.50%

INDUSTRY

SIZE GROUP

BDO'S TAKE

The construction, professional services and retail & consumer products industries reported the highest average salary increase budgets of over 5.25%, which may be a sign of a concerted effort to counteract high turnover levels. At the other end of the spectrum, the education and government/public sector industries reported the lowest average salary increase budgets. Education typically has limited budgets. The government/public sector is known for focusing on benefits rather than salary and may need additional time to respond to the pressure exerted by rising inflation and the competition for talent.

3.75%

Median

Average

5.29%

3.44%

4.31%

5.04%

3.43%

3.71%

3.52%

4.05%

4.35%

4.16%

5.86%

3.61%

5.44%

4.73%

4.54%

4.50%

Association

Construction

Education

Financial Services - Nonbanking

Government/Public Sector

Insurance - Nonhealthcare

Healthcare

Manufacturing

Natural Resources

Professional Services

Real Estate

Retail & Consumer Products

Technology

Clinical Research Outsourcing + Life Sciences

Financial Services - Banking

Insurance - Health

Gaming, Hospitality & Liesure + Restaurants

Clinical Research Outsourcing + Life Sciences

Technology

Retail & Consumer Products

Real Estate

Professional Services

Natural Resources

Manufacturing

Insurance - Nonhealthcare

Insurance - Health

Healthcare

Government/ Public Sector

Financial Services - Nonbanking

Financial Services - Banking

Education

Construction

Association

4.00%

4.50%

5.00%

3.50%

4.50%

4.00%

3.70%

3.15%

3.00%

4.00%

3.75%

3.00%

5.00%

3.50%

BDO'S TAKE

Larger companies reported lower salary increase budgets compared to their smaller counterparts. The reason could be that larger organizations are not able to pivot as quickly due to the need for management and possible board approvals, thus have not revised their projected salary increase budgets. Ultimately, they may have to rely more on counteroffers and stay bonuses to retain personnel. Alternatively, it is possible that larger companies offer more in total rewards and perks (e.g., flexible schedules, tuition reimbursement, adoption assistance, pet insurance) than their smaller counterparts.

Assets < $500M or Revenue < $100M $500M to < $2.5B or Revenues $100M to < $750M Assets $2.5B to < $5B or Revenues $750M to < $1.5B Assets $5B to < $10B or Revenues $1.5B to < $3B Assets $10B+ or Revenues $3B+

3.00%

3.30%

4.00%

3.53%

3.69%

4.63%

4.39%

4.50%

Median

Average

4.00%

4.50%

5.00%

3.50%

4.50%

4.00%

3.70%

3.15%

3.00%

4.00%

3.75%

3.00%

5.00%

3.50%

All For-Profit Organizations

Publicly Traded

Privately Held

Private Equity Backed/Owned

Nonprofit

4.58%

3.95%

4.72%

4.73%

3.81%

All For-Profit Organizations

Publicly Traded

Privately Held

Private Equity Backed/Owned

Nonprofit

3.53%

3.69%

4.63%

4.39%

4.50%

3.00%

3.30%

4.00%