The Hawaii Employers Council (HEC) has released its 2024 Salary Adjustment Survey Highlights, revealing valuable insights into the compensation landscape across the state. This comprehensive survey delves into the strategies employed by local organizations to navigate salary budgets amidst economic uncertainties. The findings shed light on key trends, including salary adjustments, pay structures, performance incentives, and retention strategies, offering a unique perspective on Hawaii's evolving compensation landscape.
Hawaii Bucks the National Trend
Despite a national decline in salary increases, Hawaii saw a modest increase in the median pay adjustment—from 3.0% in 2023 to 3.2% in 2024.
Union Gains Outpace Non-Union Adjustments
While most non-union salary adjustments remained stable, some union groups experienced substantial increases. Notably, Office & Clerical Union workers saw their median adjustment jump from 2.5% in 2023 to 4.3% this year.
Formal Pay Structures Hold Steady
The use of formal pay structures remains prevalent, with 57.2% of participating organizations employing them. These structures saw an average adjustment of 2.4%, mirroring broader market trends. Market pricing continues to dominate as the primary approach to setting compensation, emphasizing the importance of ensuring market competitiveness.
Performance Incentives Stay Strong
Incentive plans are key to many organizations’ compensation strategies, particularly for executives and exempt employees. The median incentive awards for the past year ranged from 4.1% for non-union employees to 15.0% for executives, highlighting the focus on rewarding top performers.
Recruitment and Retention Remains a Priority
With ongoing recruitment challenges, companies use various strategies to attract and retain talent. Market-based pay adjustments, referral bonuses, and non-cash recognition programs are among the most popular methods. These tools aim to help organizations stay competitive in a tight labor market.
Want to dive deeper into these trends and uncover more about Hawaii’s evolving compensation landscape? Explore the highlights of the 2024 Salary Adjustment Survey to understand how your organization can better align its salary strategy with market trends.
Gain valuable insights from HEC surveys. If you want to stay informed about the latest trends and practices in the industry or explore how your organization compares, participate in our next survey. Stay ahead of the curve and make data-driven decisions by participating in our survey services today.