Strategies to Align Compensation in a Time of Inflation
Offer one-time bonuses as well as non-financial rewards
With the current U.S. inflation rate running over 8 percent, the highest in four decades, employees are asking if their organization(s) plan to keep salaries in stride with inflation.
The current surge in prices is caused by several factors including the rising cost of labor (particularly in low wage roles), a constrained supply chain, historically low interest rates which until recently drove consumer spending and a tight market for housing which drove up costs.
Exacerbating these conditions, the U.S. economy continues to create jobs with “Help Wanted” signs evident in many parts of the country. The job market is particularly competitive for top talent and within key disciplines, especially in STEM fields. And many employees are using this opportunity to change jobs and secure a pay increase, promotion, or work environment otherwise unachievable with their current employer.
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