Factors at play to determine salary increases include performance measures (57%), job level (44%), collective bargaining status (35%), employee classification (35%), department (26%), full-time/part-time status (22%), and service time (17%).

Related: How much salaries will increase (or decrease) globally in 2023

Employers, however, are also examining benefits and compensation as a whole, taking a total rewards approach. Employers are planning the following changes for 2023:

• Employee wellbeing (e.g., wellness/mental health/financial): 66%
• Work culture and work/life benefits (e.g., DEI, community service, child/elder care, flexible work options): 57%
• Learning and development (e.g., manager/skill-based training, educational assistance, student loan repayment): 48%
• Health care benefits: 35%
• Retention (e.g., service awards, recognition, phased retirement): 34%
• Paid leave (e.g., vacation, holidays, sick leave, parental, maternity, adoption, family, sabbaticals): 32%
• At-work perks (e.g., casual dress code, transportation benefits, fitness, childcare, clinics): 27%
• Incentive pay (e.g., year-end/sign-on/performance/discretionary/retention bonuses, profit-sharing, stock options): 24%
• Retirement benefits (e.g., defined contribution, defined benefit, deferred compensation): 24%
• Voluntary (employee-pay-all) benefits:15%

"With the often still-slow pace of finding new staff to replace those who left, employees continue to experience the effects of increased workloads and burnout," adds Stich. "The question is: how to keep them engaged and committed? Employers need to look at the mix of employee benefits they offer. Benefits designed for the long-term, like retirement plans, won't have the desired retention effect on younger employees experiencing burnout. Employers need to keep their total rewards offerings competitive, while also shifting their focus to the immediate. Company culture and well-being offerings, for example, are having an immediate and significant impact."