Last year, I blogged about Pearl Meyer’s quick poll on how workforce base salaries might climb higher in light of record inflation and high turnover rates. In May, Pearl Meyer conducted another quick poll with 337 companies to see whether those expectations were implemented — and it looks like 70% of the companies’ salary increases were higher in 2022 compared to 2021. Of those 70% with higher salary increases, the primary factor driving the increases were retention concerns (44%) followed by the higher cost of living and rising inflation (30%). Here is an excerpt of the key findings:
– After more than two decades of very flat total base salary increases hovering in the low 3% range, 2022 increases were 4.8% for all employee groups combined. Moreover, total increases were over 4% for two-thirds of survey participants, and over 6% for a quarter of organizations.
– Results indicate that organizations responded to this perfect storm of record inflation, high turnover rates, and a shortage of labor by providing more generous increases as a tool to attract and retain talent.
– This very timely survey reports that about one-third of organizations are considering or planning to provide mid-year salary increases in 2022. Historically, mid-year increases have been rarely used so this will be an interesting trend to watch. Most companies are giving thoughtful consideration to mid-year increases and are providing them to key employees, targeted job families, and top performers rather than granting increases across the board.
— Emily Sacks-Wilner, CompensationStandards.com, June 28, 2022
