According to a study of 1,001 employers held between October and November, the expected salary increase is quicker than actual raises provided
in the previous two years, despite labor shortages and high inflation.
Furthermore, firms plan to pay comparable average rises across jobs, from entry-level to more senior employees, according to Jennings.
Job postings in the United States are hitting an all time high, owing to a record 4.6 million people resigning their work in November, a phenomenon
called the “Great Quit.”
Employers have raised pay to attract and hire employees in the face of high labour demand. As per the Willis Towers Watson analysis, around 75% of
employers mentioned the tight labour market as a reason to boost their spending for increases.
Inflation was noted as a factor in increased anticipated compensation by fewer employers (30%). As a result of the epidemic, which has disrupted
supply chains and caused consumers to shift their purchases toward more tangible products, the cost of living is rising at its highest yearly rate in over
forty years. Companies may feel compelled to raise wages in order to assist workers to stay up with growing prices.
Earnings growth will also increase dramatically in 2021, providing corporations greater leeway to increase employee compensation. A little more than
a third of employers indicated better-than-expected financial outcomes as a justification for raising compensation.
In total, 31 percent of firms upped their wage estimates in just some few months. As per Willis Towers Watson, respondents in June 2021, for instance,
had budgeted for a 3% growth in worker compensation this year.
As according Jennings, organisations are vying for employees in other ways besides salary. Some are focused on career growth, mental well-being
programmes, and other workplace components to keep workers interested and satisfied.