Ninety-seven percent of employers who responded to Palmer Group’s annual salary survey plan to increase employees’ compensation in 2025, an increase from a year ago and a signal companies want to retain workers, David Leto, the company’s leader, said.

Palmer Group, in collaboration with the Greater Des Moines Partnership, released its annual salary survey today. Nearly 200 employers responded to the survey, which was launched in 2013. Respondents were from companies of varying sizes and sectors, said Leto, president and CEO of the employment group.

The survey began as a way to gauge employer compensation plans in the coming year. The survey now provides the temperature of the overall employment climate, including hiring plans and work options for workers.

A year ago, 95% of survey respondents indicated they planned to increase compensation and in 2023, 93% said they planned to offer raises. In addition, 78% of respondents indicated plans to offer raises of 3% to 4% to employees in 2025, an increase from 65% in 2024 and 53% in 2023.

Just 5% of respondents — the lowest percentage in the survey’s history — said they planned to increase wages 5% or more in 2025. In 2024, 18% of respondents planned to increase wages 5% or more.

“I think organizations have increased salaries quite a bit over the last number of years, and they are calming down on that a little bit now,” Leto said.

To read the entire article and view the survey, click here.