Report Shows Many Companies Planning Raises in 2022

A survey by the Conference Board says higher inflation is causing many companies to plan broad pay raises for employees this upcoming year. Budgets for pay increases are higher than they’ve been for over 10 years.

The report shows companies are budgeting an average of 3.9% of total payroll for wage increases. 39% of those surveyed said inflation was a factor.

Labor shortages are another factor in planning pay raises. Labor Deportment data shows around 2.8 million more job openings than unemployed workers in September. Many companies responded by offering higher salaries to new employees. However this may cause existing workers to look for higher-paying jobs if there’s too much of a pay gap between them and less-experienced new hires.

Half of the 229 U.S. companies surveyed in November had over 10,000 employees. However the pressures of inflation and a tight labor market affect businesses of many sizes.

As a small business owner, you may be contemplating your budget for employee raises as well. Lin Company is positioned to assist you in smart decisions for your budget. We know how to balance the many factors involved. Contact us to find out how we can help you make important payroll decisions.

Source: Wall Street Journal “Companies Plan Big Raises for Workers in 2022“ – Dec 7, 2021