There is a silver lining for companies Americans amidst the news of gloom and doom with an impending recession ahead. According to global advisory, broking, and solutions company, WTW, overall salary increases in the United States are forecast to rise 4.6% in 2023 from 4.2% this year.
Despite the threat of an impending economic downturn, American companies estimate they will be increasing their average worker’s salary.
Boosting salary budgets is one way to attract and retain employees. Some 68% of companies have increased their salary allocation as many suffer from hiring and staffing issues.
In an interview with Fortune magazine, WTW research data intelligence research director, Hatti Johansson said, “As inflation continues to rise and the threat of an economic downturn looms, companies are using a range of measures to support their staff during this time.”
About seven in 10 companies said they spent more than they planned to on salary increases and compensation adjustments over the last year and in order to fund pay rises, one in five companies were planning to raise prices on their products.
WTW recommends that if a company cannot keep paying more but wants to retain its staff it should focus on the overall employee experience, not just on providing pay increases.
According to a study, two third of companies have already provided workers with more flexibility and 61% have sharpened their focus on diversity, equity, and inclusion policies.
“By focusing on health and wellness benefits, workplace flexibility, careers and DEI, organizations can position themselves as the employer of choice for their current and prospective employees,” said Jennings.
Nearly 70% of Americans are looking for extra work to combat inflation, according to a survey by Bluecrew, a workforce-as-a-service platform.
Some 85% of Americans said they have changed their spending habits because of inflation and 72% say it’s impacted the way they view their job while 57% say they have sought out additional roles in the last one year.
“Rapid inflation is forcing people to look at not only how they’re spending their money but also how they’re earning their money,” said Matt Laurinas, chief customer officer at Bluecrew.
Data from St Louis Federal Reserve shows that nearly 5% of Americans currently hold multiple jobs. In addition, some 65% of people say they foresee themselves looking for new opportunities in 2023. That number will go up if a recession causes unemployment to rise.
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