Companies planning to give big pay raises for employees in 2022
By: Bob D'Angelo, Cox Media Group National Content Desk
2022 could be a very promising year financially as an employee. “According to the report, businesses are expected to boost employees’ paychecks by 3.9%, signaling the fastest wage growth since 2008, The Washington Post reported.” As of now this number is just a speculation, with inflation on the rise I wonder how much of a wage increase we will actually see. The job market has been great since the economy has reopened, a lot of businesses are still looking for more employees and a large number of people chose to remain unemployed. With so many people out of work, companies need to offer an intentisng salary to incentivize people to get back to work. The wage increase needs to be significantly more than the % inflation has increased or there will still not be enough reasons to go back to work..
4 comments:
I think it is good companies are looking to increase wages as inflation is hovering around at all time highs. I think something to consider though with the labor shortage is how workers were treated at the beginning of the pandemic. Some companies abruptly fired lower level workers instead of the higher ups taking pay cuts and I think this ultimately has been more impactful on the labor shortage as not only were workers making more to stay home, but also workers have sour tastes in their mouths of how these companies treated them. I think these companies need to take better steps in getting workers outside of just higher wages to really change the unemployed mindset right now.
I have seen a noticeable rise in income just over the last year. Without considering any data, I have noticed entry level industrial positions hiking up they're pay, and pushing in to the $30 an hour mark. I can tell by advertising campaigns and signs that firms are desperate for workers and willing to pay much more in order to find some. This speaks to the way that our labor market is going. People are refusing to work still, and the supply of labor can not keep up with the demand now that the economy is working its way back up.
I think that it is a really good idea for companies to increase the pays of their employees. This could provide a very big incentive for many people to go back to work, especially since there is a worker shortage in the US right now.
Companies really have had their hands forced here. Without employees, businesses cannot do really anything- and that includes making profit most importantly. We've now seen major companies like McDonalds and Walmart offer paid education and higher wages. Lots of small businesses are also throwing around sign on bonuses to intrigue new workers. Overall, the workforce is receiving the benefits here as wages and incentives continue to rise.
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