Thelander PC Digest: January 2024
How Have Salary Increases for Staff Level Employees Changed Since 2021?
Welcome back to the first Private Company Digest of 2024. Following a successful week at the J.P.Morgan Healthcare Conference, we hosted a women’s event at Tiffany & Co honoring more than 300 women executives and investment professionals. You can find pictures here.
This month we are diving deeper into the results from the Salary Increase & Bonus Survey, which covered merit increases, option pool, and bonuses for privately held companies. The full results are available through a private company subscription to the Thelander online platform. Already a subscriber? Download the full report here.
Last month, we took a look at how CEO salary increase percentages were impacted by the total amount of financing raised by a company. Now, we’re looking at staff-level employees to see how their salary increase percentages have changed since 2021.
Chart 1 and 2 look at if staff level employees received a salary increase between 2021 to 2023, and the salary increase percentage they received. We see the following insights:
- Since 2021, at least 76% of companies have given their staff level employees a salary increase.
- The median salary increase percentage has ranged from 4.00% to 5.00% since 2021.
- The peak salary increase across all percentiles was in 2022. Competition for talent was especially tight in 2021 leading into 2022 so companies were paying top dollar to retain key employees.
Chart 3 looks at how different salary increase factors have changed year-over-year. We see the following:
- “Cost of living or annual salary increase” has increased as a factor since 2021 from 47% to 59%.
- “Salary adjustment or correction” has decreased from 30% to 20% since 2021.
- This could be attributed to companies getting the salary right from the beginning.
- The “Inflation” factor peaked in 2022.
Our Findings:
As mentioned in the December 2023 Digest, the amount of salary increase should be looked at in relation to where the salary is compared to the real-time market comps on the Thelander online platform. The numbers are meant to be a guideline that should be taken into account, along with the individual’s performance, and the importance of the role to the organization.
| Now is a great time to input (or update) your compensation data in the Thelander Private Company Compensation Survey with actual bonus amounts given for 2023, target bonus amounts for 2024, base salary, and founder/non-founder equity percentages. Participation allows you to trial the Thelander platform, secure free access to a subset of the results, and lock in discounted pricing for the year. All data is published in aggregate only, with no individual names or company names reported. |
Participate in the Thelander Private Company Compensation Survey Here
Tags: Newsletter, Private Company