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Highest Pay Increases in Years Won’t Match Inflation

February 16, 2022

Via: SHRM
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Employee demands are driving changes in compensation strategy as employers respond to labor shortages and surging inflation, new research shows.

Pay data and software firm Payscale’s 2022 Compensation Best Practices Report reveals that 85 percent of organizations are concerned about rising inflation eroding the value of pay increases.

The survey gathered responses from management-level decision-makers at 5,578 organizations, mostly based in North America, from November 2021 to January 2022.

“When it comes to pay, employers are scrambling to figure out what to offer new hires and how to structure salary increases to retain their current workforce,” said Shelly Holt, chief people officer at Payscale. “As a result, compensation planning has never been more important to get right.”

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