Dive Brief:
- A strong share of employers have offered higher starting salaries and increased pay in recent months to attract and retain talent, but they should still prepare for raise requests ahead of 2023, according to the results of a Robert Half survey of 1,000 U.S. workers and 1,500 hiring managers conducted between June and July.
- Per Robert Half, 55% of employees said they felt underpaid despite overall salary growth in the U.S., and 48% said they would ask for a pay raise if they did not receive one by the end of 2022. Voluntary quits are a concern, too, as 41% of workers said they would consider changing employers to chase a 10% pay increase.
- Workers in the survey showed confidence when it came to pay, with 56% stating that they were more likely to request a higher starting salary compared to 12 months prior, Robert Half said. Additionally, more than half said they felt that they remained in control when negotiating pay and benefits.
Dive Insight:
The results are similar to those of a recent survey by Salary.com, which found that nearly half of 1,000 employers surveyed said they would implement higher year-over-year salary increase budgets. Predictions around high pay increases have persisted even as fears of a potential economic downturn create anxiety around pay cuts.
News headlines bolster this research. Amazon announced Wednesday it would spend close to $1 billion on pay increases for front-line workers, bringing the average starting wage for customer fulfillment and transportation operations roles from $18 per hour to $19 per hour, Retail Dive reported. The trend applies to front-line workers in other industries; an Aon report published earlier this week found that 68% of healthcare employers planned to increase pay and starting salaries for nurses.
Pay transparency is another factor to consider, as the competition for talent pushes employers to include pay ranges in job postings. Regulators have applied pressure on the subject as well. Earlier this week, California joined a growing list of U.S. jurisdictions to implement pay transparency requirements. But not all employers have embraced this movement, according to a Willis Towers Watson survey published this month, in which 31% of employer respondents said they were not prepared to disclose pay and salary ranges.
At the same time, employers are still hiking investment in benefits and perks outside of base pay. Robert Half’s survey found that 40% of employer respondents said they added remote work opportunities to attract talent, while 36% added mental health resources and 33% added wellness programs.
