Many workers feel overdue for a pay raise, finds new research from the personnel staffing firm of Robert Half. According to its 2022 Salary Guide, companies will need to enhance their compensation strategy or risk losing top talent to competitors.
"In this tight labor market, increasing salaries is table stakes for employers,” said Half’s Senior Executive Director Paul McDonald. “Companies must regularly revisit pay ranges and discuss career paths with employees to align on expectations."
The research found that 49% of workers think they're earning less than they deserve. The Gen Z professionals (57%) and women (52%) are most likely to feel shortchanged.
Nearly one in three employees (31%) would consider quitting their job if they don't get a pay bump by year's end. Working parents (36%) and respondents ages 18 to 24 (48%) are most likely to make a career move if their salary doesn't grow.
Starting compensation for U.S. professional occupations is expected to increase 3.8% overall in 2022. Roles in strong demand, such as revenue cycle analyst and database administrator, may see even bigger gains. In addition, 48% of employers are offering signing bonuses to entice new hires.
When recruiting for open roles, six in 10 managers say they first look locally and then search outside their city if it takes too long to find skilled candidates; and 18% say they are searching anywhere from the start given the talent shortage.
About 62% of companies hiring remote workers are setting their pay based on employer's office location, while 38% are doing it by the employee's location. It's not all about the money. 66% of workers most want flexible work schedules; 56% remote work options; and 37% employee discounts.