Companies are going to have to do better with salary increases if they want to retain their talent in the U.S. labor market. Average salary budgets of 4% (or a median of 5%) were seen in 2021. However, a 5% average or 6% median increase is the rate at which respondents to a recent survey say they would stick around. In 2022, companies expect an average of 3.3% and median 3% for planned budget increases. Even though more than 50% of respondents claim to have increased salary budgets in the past 6 months, attracting and retaining talent was thought to be “somewhat difficult” for 71% and “very difficult” for 23%.
These five industries are expecting to give employees the following salary increases in 2022 compare with actual increases given in 2021:
- Retail and wholesale trade: 2.8% to 3.6%
- Finance: 2.7% to 3.5%
- Life and health insurance: 2.7% to 3.5%
- Energy: 2.6% to 3.4%
- Industrial manufacturing: 2.6% to 3.4%
As far as the main reason behind the increases, 74% of survey respondents said it was due to the tight labor market, 34% said it was fruits of stronger financial results, and 31% said it had to do with inflation or the rising cost of suppliers.
Cash for college is becoming an increasingly popular perk to offer workers to entice them to stick around. Kohl’s has joined the ranks or retailers to cover 100% of tuition, books, and fees for employees who enroll in a new employee learning benefit through Guild Education. Employees that are eligible can earn degrees or certificates in majors like technology, business, or data analytics and supply chain.
When asked for specifics around top challenges for 2022, U.S. execs names labor shortages as the top of the list. Rising inflation, supply chain disruptions, COVID-related risks, and cybersecurity all ranked highly. For CEOS worldwide, the labor shortage came in third behind COVID-19 disruptions and rising inflation. Regarding inflation, 59% of U.S. CEOs predict it to continue into 2023 or longer – 55% of CEOs around the world agreed.
Three major trends in talent acquisition for 2022 came out of a recent report: the Great Resignation will slow, flexible work will be adopted as the norm, and remote jobs will be even more competitive.
Speaking of trends, we’ve curated the 10 most critical for talent acquisition leaders to consider when evolving their strategy for 2022. Grab our infographic report, 10 Trends Dominating Talent Acquisition in 2022 here.
Until next week,
Erin and Team BountyJobs