Salary budgets will rise 3.0% in 2022, poll finds
The projected median percentage change for total salary budgets from 2021 to 2022 is an increase of 3.0%, according to XpertHR’s 2022 salary budget survey of 429 U.S. employers. It is also the projected median increase in salary budgets for the three groups of employees covered by this survey: exempt, non-exempt and managers / managers.
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According to Andrew Hellwege, Surveys Editor, XpertHR, the planned median increase of 3.0% in total salary budgets is notable, given a national labor shortage exacerbated by the COVID-19 pandemic.
“This projected median increase is comparable to the real median increase from 2020 to 2021, indicating that while the nature of work has changed dramatically over the past two years, the planned salary budget increases remain unchanged, ”he explained. “Forward-looking companies keen to overcome the labor shortage may consider increasing their projected salary budgets by more than 3.0%, or potentially consider how benefits beyond compensation can be considered. contribute to a positive experience for employees. “
Additionally, the survey reveals the important role recruitment and retention play in employers’ plans for next year’s wages. When asked if a dozen diverse factors would put upward, downward, or no pressure on their organization’s total salary budget in 2022, nearly eight in 10 organizations (79%) cited recruiting / retention as upward pressure.
“Almost four in five employers indicated that recruitment and retention has a positive influence on their total salary budget for 2022, which seems to be a clear indication that the labor shortage is a priority for companies. employers as they plan next year’s wages, ”Hellwege explains.
Meanwhile, salaries in industry (73%), inflation / cost of living (69%), economy (59%) and salaries within the organization (53%) complete the top five upward pressures on wages 2022.
XpertHR’s 2022 salary budget survey was conducted from Sep 7 to Oct 1, 2021. The survey included responses from 429 U.S. employers across various industries and workforce sizes, representing just over 2 million workers. The survey report explores several aspects of the salary budget planning process, including pressures on salary budgets, the percentage change in salary budgets from 2021 to 2022 and the month in which next year’s salary budgets go into effect. . Additionally, this report covers performance metrics for annual salary adjustments, bonus plans in 2022, etc.