62% of companies adjusting pay to align with market rates
Many companies are taking measures to increase pay equity among workers, research from talent solutions and business consulting firm Robert Half shows. More than half of C-suite executives surveyed (56%) said they have observed salary discrepancies between new hires and more tenured staff in the past year. Of those, 62% are regularly reviewing compensation plans and increasing salaries for existing employees, when appropriate, to align with current market rates.
“Market conditions have shifted dramatically, and savvy employers are stepping up to address salary gaps and ensure all employees are being paid fairly,” said Robert Half senior executive director Paul McDonald. “They know that taking a cautious ‘wait-and-see’ approach on compensation is risky and can lead to the loss of great talent.”
Workers Expect a Raise
There are several factors at play when it comes to wage growth, and employees’ expectations are among them. In a separate survey of more than 1,000 U.S. workers, one-third of respondents (34%) said they have not had a raise in 12 months and another 16% received one but were disappointed with the amount. In addition, nearly two-thirds (62%) plan to ask for a raise this year, with the top reasons being:
1. To adjust for the higher cost of living (30%)
2. To reflect current market rates (23%)
3. To account for additional job responsibilities (22%)
If workers don’t get a raise:
• 31% will ask to revisit the salary conversation in a few months
• 27% will look for a new job with higher pay
• 23% will ask for more perks
McDonald noted, “In addition to setting competitive salaries, companies must consider the entire employee experience and deliver programs that satisfy their professional and personal needs. Career advancement and remote options are two big priorities for workers today.”
Visit roberthalf.com/salary-guide for the latest information on salary and employment trends for more than 500 positions across the finance and accounting, technology, administrative and customer support, marketing and creative, legal, healthcare, and human resources professions in the U.S.