More than half of organizations plan to raise wages for only their top performers, according to a survey from Gartner.

The survey took place in June and included 130 CFOs and CEOs.

“Rising labor costs are among the most negatively impactful to operating cash flow, and it follows that we see a more limited approach to pay rises either by performance or in select markets for now,” said Randeep Rathindran, VP, research, in the Gartner finance practice.

Only 28% of CEOs and CFOs plan to raise wages for all employees.

“The data shows that for now, executive leaders intend to hold the line against large-scale pay increases, and many employees expecting pay adjustments that fully compensate for cost-of-living increase may be disappointed,” Rathindran said. “It’s clear that organizations are attempting to buy more time to read the tea leaves between persistently high inflation, the threat of recession and the state of the labor market before making significant strategic shifts.”

However, Rathindran also pointed out CEOs and CFOs are planning heavier compensation investments in the future. The survey found 43% plan one-time bonuses to employees to help retain talent and 39% plan to fully or partially index pay adjustments to inflation.

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