Report: Compensation Growth in Michigan Remains Strong

Wage increases among Michigan businesses showed a year-over-year increase of 4.3 percent from 2023 to 2024, similar to the 4.4 percent increase from 2022 to 2023, according to the results of the 2024 ASE Compensation Survey by the American Society of Employers (ASE) in Troy.
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Wage increases among Michigan businesses showed a year-over-year increase of 4.3 percent from 2023 to 2024, according to the results of the latest ASE survey. // Stock photo

Wage increases among Michigan businesses showed a year-over-year increase of 4.3 percent from 2023 to 2024, similar to the 4.4 percent increase from 2022 to 2023, according to the results of the 2024 ASE Compensation Survey by the American Society of Employers (ASE) in Troy.

The survey highlights that the convergence of historically low unemployment, noticeable inflationary trends, and sluggish labor participation has resulted in strong salary growth over the past 12 months, ASE says.

The survey also reveals certain job families experiencing wage growth rates higher than the overall survey average. Particularly, low-skill and low-wage jobs, including material handling (4.7 percent), traffic and fleet (5.1 percent), and assembly/production (5.5 percent), witnessed notable increases. Other job families experienced higher wage growth rates including administrative (5 percent), human resources (4.6 percent), and sales/marketing (4.5 percent).

“In the face of economic challenges such as low unemployment, inflation, and continued demand for workers, employers have maintained strong salary growth, with certain job families experiencing even higher wage increases,” says Mary Corrado, president and CEO of the ASE. “This reflects a strategic focus on competitive compensation to attract and retain talent.”

Other highlights from the survey results include:

  • Over half of the employers (51.6 percent) conducted a formal market review to ensure competitive wages.
  • Approximately 32 percent of organizations adjusted their salary budgets for inflation, resulting in average increases of almost 3.5 percent in 2024. This is approximately 7 percentage points lower than last year’s increases, indicating downward pressure on wages. Salary budgets refer to funds allocated for employee salary increases.
  • The 2024 projected total base pay increases are 0.5 percent lower than the 2023 actual increases, likely due to a decline in turnover rates as labor markets normalize.
  • Employers of all sizes are advised to proactively evaluate their wages and salaries as participation in the labor market is improving, but slowly.

A total of 411 companies participated in the survey, with 62.5 percent of the participants located in southeast Michigan. The survey, distributed to human resource professionals in January 2024, covers 545 job positions. Nearly 80 percent of the organizations that responded reported having 1-500 employees.

To purchase the 2024 ASE Compensation Survey results, visit here. ASE member participants can access the data at no cost via the ASE Survey Library.