Attraction and retention remain challenging for organizations worldwide
Organizations grapple with sourcing talent for major roles at every level
Average voluntary attrition rate among key markets worldwide
Source: WTW 2023 Salary Budget Planning Report – Global (December)
| Location |
Average voluntary attrition rate |
| China |
4% |
| Mexico |
9% |
| United Arab Emirates |
4% |
| United Kingdom |
4% |
| United States |
5% |
Salary budget increases continued in 2023
Because salary impacts an organization's ability to attract and retain talent, this pattern is expected to continue in 2024, but employers will be cautious about allocating their salary budget.
Percentage of annual incentives (actual and target) and LTI in CEO base salary
Percentage of annual (actual and target) and long-term incentives in CEO base salary
Source: WTW 2023 Executive Compensation Survey Report
| Country |
Actual bonus % of base salary |
Target bonus % of base salary |
LTI % of base salary |
| China |
43% |
64% |
--% |
| Mexico |
82% |
77% |
118% |
| United Kingdom |
106% |
90% |
150% |
| United States |
120% |
125% |
570% |
Percentage of annual incentives (actual and target) and LTIs in CFO base salary
Percentage of annual (actual and target) and long-term incentives in CFO/top financial officer base salary
Source: WTW 2023 Executive Compensation Survey Report
| Country |
Actual bonus % of base salary |
Target bonus % of base salary |
LTI % of base salary |
| China |
32% |
28% |
20% |
| Mexico |
43% |
36% |
28% |
| United Kingdom |
53% |
45% |
48% |
| United States |
51% |
50% |
103% |
Three percent increase in the number of unique organizations participating in WTW’s 2023 executive surveys, and a 6% overall increase in data submissions
01
Economic volatility and uncertainty could lead to lower investment levels and economic growth, which will force organizations to review their workforces and be more cautious about increased salaries (among many other things).
02
Increased disclosure requirements.
Climate and environmental, social and governance (ESG) measures to increase in prevalence with an increased focus on quantitative key performance indicators and LTI plans.
04
Focus on innovative incentives (e.g., interesting things in normal companies, normal incentives in interesting companies).
