While raises are slowly returning to pre-pandemic levels, rising prices mean higher salaries aren't likely to keep pace with inflation, new research from WorldatWork shows.
The median total U.S. salary increase budgets for 2021 are 3%, on par with the previous 10 years. Salary projections for 2022 are also 3%, The Conference Board reported in June.
The 3% median increase for 2022 is expected to hold steady across employment categories (i.e., nonexempt hourly, nonexempt salaried, exempt and executive), according to Judit Torok, a senior research analyst at The Conference Board, a large-business membership and research association.
What does this mean? “This data signals continued economic recovery and an increasingly tight labor market,” the organization reported.
Check out this useful calculator for compensation budgeting to calculate raises.
Review Salaries to Ensure Fair Pay
When planning for the upcoming year, it's always a good idea to perform a compensation audit to ensure all your employees are paid fairly. Carefully review all salaries, paying close attention for any salaries that may be unfairly low, whether due to oversight or possible discrimination. Compare their salaries to other employees as well as other competitors if possible, to make sure you're staying competitive.
Other ways your organization can work to promote fair pay is to:
1. Be transparent about pay, never ask your team to keep how much they make "hush hush."
2. Don't ask for salary history when hiring, which can perpetuate past discriminations and unfair pay.
3. Analyze comparable jobs at other organizations and see how your pay + benefits measure up.
4. Ensure minority workers and other diverse workers are not siloed into lower paying jobs.
5. Make sure your leadership team is diverse.
6. Provide robust anti-bias training for all levels of management.