April 08, 2022

A survey by Robert Half International Inc. (NYSE: RHI) found that employers are concerned about pay equity between newly hired employees and staff members who have been there for a while.

The company said 56% of C-suite executives saw pay gaps between new hires and more permanent staff in the past year, indicating salary compression. And 62% regularly review compensation plans and increase salaries for existing employees to match current market rates.

“Market conditions have changed dramatically, and savvy employers are scrambling to close wage gaps and ensure all employees are paid fairly,” said Paul McDonald, senior executive director of Robert Half. “They know that taking a cautious, wait-and-see approach to compensation is risky and can lead to the loss of great talent.”

In a separate Robert Half survey, the company found that 34% of workers said they hadn’t had a raise in 12 months and 16% had received one but were disappointed with the amount. And 62% plan to ask for a raise this year.

Of those considering asking for a raise, the top reasons were:

• To account for the higher cost of living, 30%
• To reflect current market rates, 23%
• To account for additional work responsibilities, 22%

If workers do not receive a raise:

• 31% will ask to revisit the salary conversation in a few months
• 27% will look for a new job with a higher salary
• 23% will ask for more benefits

The Robert Half executive survey included 376 C-suite individuals across a range of industries in the United States. The worker survey included 1,000 people ages 18 and older in the United States.