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What will your salary increase look like in 2022? There is good news and bad news


And many companies are also reporting high income, if not record the ones. “The staff are saying, ‘I worked hard.’ There is an expectation that more needs to come [them]”Brian Kropp, head of research at HR practice consulting firm Gartner.
In general, HR consulting firms are seeing employers offer compensation increases of 5% to 10% across a range of jobs, but especially in areas where workers are needed most, in which case that increase could extend to 20%.

But it’s not a comprehensive phenomenon, nor is it likely to happen next year.

Inflation may be at a 30-year high, but that doesn’t mean employers should feel obligated to cover your increased costs.

To the extent you’ve adjusted for the cost of living in the past, that 1% to 2% annual increase is not likely to change next year.

That’s because an increase in your base salary is a permanent increase in your employer’s fixed costs and they won’t raise wages in the short run with historically high inflation, especially because they might think it could cool down next year, Kropp said.

So who will be in line for more real money?

However, for many workers, their pay rise – including wage increases and bonuses – will outpace inflation. And for some, it is significant.

Employers’ most immediate concern is attracting and retaining talent for key roles. The most important things including supply chain leadership and supply chain engineering jobs, as well as roles in digital marketing, data analytics, artificial intelligence, engineering and cybersecurity, Catherine Hartmann, North American reward and work practice leader at HR consulting firm Willis Towers Watson.

Want a higher paying job?  First you need to find out how much you actually earn

It also includes hourly workers in distribution warehouses and in restaurants or other industries who begged for help and couldn’t afford to lose the staff they already had.

What employers are looking for, however, is that higher wages aren’t always enough to solve the problem, Kropp said, noting that one restaurant chain has promised to hire anyone for a higher salary. $3 per hour more than they are currently making but the chain still had to close some locations. Another company, he said, raised the salaries of all its IT staff by 10%, but that didn’t affect revenue in the division.

“There’s a huge amount of wage inflation because there not enough people on the labor market to hire,” Kropp said.

And that’s especially true when it comes to people with tech skills, because all companies, not just those in the tech sector, are competing to hire them.

If you’re in a key role, you’re best positioned to ask for what you want, either at your current employer or a competitor across the street, which can bring you much more. 20% to 25% more than you did, says Kropp.

If your current employer wants to keep you, they may increase your base salary somewhat, but they may also offer a retention bonus to encourage you to stay. It can be all cash or some combination of cash and stock. But it’s likely to pay in installments over several years, so you’ll have to stay with the company to make enough money, says Dave Hilborn, a managing partner in human capital management at West Monroe said.

Hilborn’s company found in a recent survey of 150 C-suite executives that 68 percent plan to raise wages and salaries to attract and retain talent, and 46 percent expect to. employee retention awards.

Other ways you can earn more in 2022

Typically, your “gross” salary increase at your current job can include several components rolled into one: cost of living, individual and company performance, and related adjustments Go to the marketplace for salary updates for a given role.

Regardless of your job function, if you’re a top performer, your best way to get a substantial raise from your current employer is to get a competitive offer and see if it works. whether your company is a good fit for it, says Hartmann. “Employers are dealing with individuals who say ‘How can you help me? I can make more money down the road.'”

Hartmann also sees companies speeding up promotions as a way to retain people at different levels of the organization.

And while once reserved for senior leadership positions, both Hilborn and Hartmann are seeing companies now offer one-time retention pay incentives to those in the chain and even to certain individuals. contributor.

“They’re taking their equity and pushing it lower in the organization because of the special one-time retention grants below the executive level, saying, ‘This is $25,000 to $50,000,'” said Hartmann. ‘ [that will get] payment in installments. ”

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