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Employers are preparing for big pay raises in 2022

According to the latest Wage Survey 240 of the Conference Board, if you have a job, you can expect even greater salary increases next year. Base salary in 2022 could increase by an average of 3.9%. The majority of companies employ more than 10,000 people. Employers were asked how much wage costs are expected to increase in 2022 for the current workforce. Therefore, the 3.9% jump does not include any bonuses or other one-time payments that the company may offer. Why is it increasing so much? Almost half (46%) of employers say they need to offer higher wages to attract workers given the labor shortage. The Conference Board said employers would provide new employees with higher salaries, leading to “wage reductions.” In other words, the wage gap between new employees and incumbent tenure and above will close. ” Turnover rate for more experienced workers. ” And 39% of employers cited high inflation as another factor. Inflation is usually not the number one reason for employers to raise their base salary, but it’s not negligible this year, and companies can have some employees jump on board if wages don’t rise enough. I am concerned about having sex. , Vice President of The Conference Board, whose research focuses on the labor market. In fact, employers’ views on wage growth have changed rapidly over the past year. In April, they were asked the same question about forecasting wage increases in 2022 when labor shortages were less pronounced and high inflation was not yet considered persistent. At that time, they estimated that their costs would increase by only 3%. If you search for a new job and return to the company with a competing offer, your base salary could be even higher. Alternatively, it may accept new offers. “People who change jobs have much higher wage increases than those who stay in the same job,” Lebanon said.

If you work, you’re probably getting a bigger salary increase than next year.

Base salary can increase by an average of 3.9% In 2022, the largest one-year expected hike since 2008, According to the latest wage survey of 240 companies by the Conference Board, most of them employ more than 10,000 people each.

Employers were asked how much wage costs are expected to increase in 2022 for the current workforce. Therefore, the 3.9% jump does not include any bonuses or other one-time payments that the company may offer.

why Significant increase?Almost half (46%) of employers quote The need to offer higher wages In order Attract Workers given a labor shortage.

The Conference Board said employers would provide new employees with higher salaries, leading to “wage reductions.” In other words, the wage gap between new employees and incumbent employees who are in the office or above will close.

“If experienced workers feel that wage advantage is no longer important, they may look for new jobs in a tough labor market, which is the high turnover rate for experienced workers,” the National Industrial Council said. Will lead to. “

In addition, 39% of employers cite high inflation as another factor. Inflation is usually not the number one reason for employers to raise their base salary, but it’s not negligible this year, and companies can have some employees jump on board if wages don’t rise enough. I am concerned about having sex. , Vice President of The Conference Board, whose research focuses on the labor market.

In fact, employers’ views on wage growth have changed rapidly over the past year. In April The labor shortage was not so noticeable And high inflation was not yet considered sustainable. They were asked the same question about the expected rise in wage costs in 2022. At that time, they estimated that their cost would increase by only 3%.

If you search for a new job and come back to your company with a competing offer, you may see an even bigger pop in your base salary. Alternatively, you can receive a new offer.

“People who change jobs have much higher wage increases than those who stay in the same job,” Lebanon said.

Employers are preparing for big pay raises in 2022 Source link Employers are preparing for big pay raises in 2022

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