- Pay Increase Intentions Lower Among CFOs for Third Consecutive Year
- CFOs are planning smaller pay increases for employees in 2025, according to a survey by Gartner, Inc.
“The slowdown in pay increases reflects falling rates of inflation and lower levels of voluntary employee attrition,” said Randeep Rathindran, Distinguished VP, Research in the Gartner Finance practice. “However, even though the labor market is cooling, CFOs must balance the potential risks of attrition and low engagement as employees still face stubbornly high costs for household necessities.”
Figure 1: Planned Changes to Average Employee Compensation in 2025, 2024 and 2023
![[Image Alt Text for SEO]](https://emt.gartnerweb.com/ngw/globalassets/en/newsroom/images/graphs/wages2025.png)
Source: Gartner (January 2025)
Gartner experts advise CFOs to work with their CHRO to develop a differentiated compensation strategy that ensures packages for critical talent, and that key roles remain competitive as the market evolves.
“CFOs who are significantly reducing employee wage increases should use leading indicators of employee engagement to fully understand the potential impact on talent attrition,” said Rathindran.
