This year many workers could get a salary increase. And is that as employers try to retain employees in the midst of the ‘Great Resignation’, many of them are willing to pay more in wages and bonuses.
In fact, 51% of HR leaders in the US said their company expects increases of more than 5% on average, according to a survey by professional services firm Grant Thornton.
Additionally, 68% said their company has already increased the number of employees eligible to receive a cash bonus. The firm surveyed 551 top US human resources leaders from companies that had at least 500 employees.
“We are seeing enormous upward pressure on wages. Salaries are, in many cases, a kind of game, a situation that organizations have to do well to attract and retain people, “said Tim Glowa, director of Grant Thornton, who helps companies better attract and retain people. the employees.
While not all companies will grant 5% raises, overall, it is expected that there will be higher wage increases in 2022 than there were last year.. The Conference Board, a New York-based think tank, predicts a 3.9% increase in salary costs for companies, which includes paying for new hires. That is the highest rate reported since 2008.
Changing jobs generally brings a larger pay increase than staying with your current employer. Those who changed jobs saw an average salary increase of 4.3% in November, compared to 3.2% for those who stayed in their jobs, according to the Atlanta Federal Reserve.
Many Americans have already quit their jobs, with a record 4.5 million who did so in November alone. Some experts anticipate that job abandonment rates will accelerate this year. Of the HR leaders surveyed by Grant Thornton, 60% believe that the companies’ war to get and retain workers will last more than a year.
“This is no longer just a human resources problem. It’s a top management problem. We see that more organizations need to work together as a leadership team to discover what they can do to retain talentGlowa said, according to CNBC.
Although salary is a more than important factor for many workers, it is not the only thing that interests them. And that’s because in another Grant Thornton survey of 1,500 full-time U.S. employees, it found that 51% would forego a 10% to 20% salary increase just to have more flexibility as to when and where to work.
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