Over 61% of CFOs Anticipate Raising Employee Salaries This Year
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Synopsis
A recent report indicates that over 61% of CFOs worldwide are set to increase employee compensation this year, reflecting a focus on technology investments for growth and efficiency amid a cooling labor market.
Key Takeaways
- 61% of CFOs plan salary hikes this year.
- Technology budgets are expected to rise.
- 47% of CFOs aim for a 10% increase in spending.
- Employee engagement risks persist.
- Digital transformation is now essential for competitiveness.
New Delhi, Feb 15 (NationPress) Approximately 61% of CFOs worldwide are gearing up to raise average employee salaries this year, a decrease from 71% in 2024 and 86% in 2023.
A report from Gartner indicates that CFOs are planning to significantly increase their technology budgets, as they consider digital investments vital for growth and operational efficiency.
Notably, 77% of surveyed CFOs intend to enhance spending in technology, with nearly half (47%) planning to boost their budget by 10% percent or more in 2025 compared to the previous year.
This data highlights the essential role that technology plays in fostering profitable growth and efficiency across various sectors.
The ongoing emphasis on technology aligns with advancements in both traditional and generative AI, which are expected to introduce new offerings, improve decision-making processes, and increase productivity, as stated by Randeep Rathindran, Distinguished VP of Research in the Gartner Finance practice.
The report notes that while a cooling labor market provides organizations with greater leverage regarding compensation, CFOs should remain aware of the risks associated with employee attrition and low engagement, particularly as the cost of living continues to rise.
Moreover, the report revealed that most industries are prioritizing technology investments for 2025.
In the retail sector, both the cost of goods sold (COGS) and employee compensation are projected to increase as businesses strive to enhance product quality and customer interactions. On the other hand, the banking sector is focusing on salary increases and external services to attract skilled tech talent and outsource non-core functions.
Rathindran emphasized that investing in technology has shifted from an option to a necessity for businesses aiming to stay competitive.
The ongoing rise in technology budgets across sectors underscores a strategic pivot towards digital transformation as a catalyst for innovation and efficiency, he added.
Globally, organizations have maintained a robust pace of technology spending increases, with 50% of CFOs having planned to elevate their technology budgets by 10% percent or more last year, and 43% having similar intentions in 2023, according to the report.
