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Employers are preparing for a big salary increase in 2022

If you have a job, you will probably get a bigger raise next year. Base wages could increase by an average of 3.9% in 2022, the largest expected increase in a year since 2008, according to The Conference Board’s latest salary survey of 240 companies, most companies employ more than 10,000 people each. Employers were asked how much they predict their payroll costs will increase in 2022 for their current workforce. So the 3.9% gain does not include any bonuses or other one-time payments a company may offer. Nearly half (46%) of employers believe that higher wages are needed to attract workers due to labor shortages. When employers offer higher wages to new hires, it leads to “payroll pay,” the Conference Board said. That means the pay gap between new hires and existing workers who are employed or have a higher rank is narrowing. “When more experienced workers feel that their wage advantage is no longer significant, they may seek new jobs in the tight labor market, resulting in high employment. workers are more experienced,” noted the Conference Board. 39% of employers cite high inflation as another factor, although typically inflation is not the top reason for employers. campaign to raise base pay, but this year it’s too high to be ignored, with companies worried that some of their employees could jump jobs if they don’t get enough pay, said Gad Levanon, a vice president at The Conference Board, whose research focuses on the labor market.In fact, employers’ thinking about wage growth has changed rapidly over the past year.In April, when labor shortages hit, Although dynamics were not clear and high inflation was not yet considered persistent, they were asked the same questions about the expected increase in wage costs in 202. 2. At the time, they estimated those costs would only increase by 3%. Or you can just accept new offers. “Those who switch jobs are getting a much higher pay rise than those who stay in the same job,” Levanon said.

If you have a job, you’ll probably get a bigger raise next year.

Base salary can increase by 3.9% on average in 2022, biggest one-year projected increase since 2008, According to The Conference Board’s latest salary survey of 240 companies, most each employ more than 10,000 people.

Employers were asked how much they predict their payroll costs will increase in 2022 for their current workforce. So the 3.9% gain does not include any bonuses or other one-time payments a company may offer.

Why big increase? Almost half (46%) of employers are quoted demand for higher wages Order attractive workers due to labor shortage.

When employers offer higher wages to new employees, it leads to “payroll pay,” the Conference Board said. That means the pay gap between newly hired employees and existing employees with a higher position is narrowing.

The Conference Board notes: “When more experienced workers feel that their wage advantage is no longer significant, they may seek new employment in a tight labor market, leading to rotation labor migration of more experienced workers”.

And 39% of employers cited high inflation as another factor. While typically inflation isn’t an employer’s top reason for a base pay raise, this year it was too high to ignore, with companies worried that some of their employees could jump jobs if they don’t get enough pay, says Gad Levanon, a vice president at The Conference Board, whose research focuses on the labor market.

In fact, employers’ minds about salary increases have changed rapidly over the past year. In April, when labor shortage is not obvious and high inflation is still not considered persistent, they were asked the same questions about the expected increase in wage costs in 2022. Back then, they estimated those costs would increase by only 3 %.

You may find an even greater base salary if you look for a new job and return to your company with a competitive offer. Or you can just accept new offers.

“Those who switch jobs are getting a much higher pay rise than those who stay at the same job,” says Levanon.

https://www.kcra.com/article/employers-preparing-pay-raises-2022/38463167 Employers are preparing for a big salary increase in 2022

JOE HERNANDEZ

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