If you’re looking forward to a pay raise in the new year, there’s good news and bad news. The good news? Most companies are looking to give out raises in the next year. However, the not so good news is that there are only a select few who will be receiving these pay increases. This information comes from a new survey of 600 business leaders on ResumeBuilder.com. This study discovered that of the 74% of companies that plan to give pay raises to employees in 2024, less than half of their employees will receive these raises.

This trend is driven by companies cutting costs across the board as well as the overall economic uncertainty of this time. Employees are highly focused on pay transparency and the talent of employees remains narrow. These trends are shown in another study done by YoH, a talent and outsourcing company, which found that 26% of employees in America would switch employers with the incentive of a higher salary or better benefits. This research underscores the prediction that the labor market will be extremely competitive in 2024.

All of this being said, how can companies handle the topic of salaries and pay raises when there are few to go around? Here are some best practices employers can use when handling this topic in the new year.

One of the most common issues that has come out of the post-pandemic era is the mismatch between employees’ and employers’ expectations of work flexibility and hybrid work. As employers are calling workers back to the office, employees are unsure as to whether they work hybrid, remote, or fully in the office.

It seems that at this point no one can agree on the “best place to work” in a post-pandemic world. Studies have shown similar rates of well-being and employee contentment across fully remote, hybrid, and in-office workers. In the end, “best place to work” here came down to personal preference, something no study can measure. When employees find themselves strongly desiring one type of work place over the other, that is when companies see a high level of turnover and other internal issues. These employees are also far more likely to experience higher stress, overall unhappiness with their employer, and report feeling emotionally detached and disconnected.

The takeaway here is that as employers have started to call workers back to the office, it’s more important than ever that they seek feedback from employees and find more ways to be flexible. Our entire workforce has been through massive shifts in the past several years, and while not all companies may be offering pay raises in 2024, flexibility in the work environment can go a long way to reducing turnover and improving company morale.