Pay Up: Why Companies Must Pay Employees More in 2022

News and insights for job seekers and hiring managers.

Pay Up: Why Companies Must Pay Employees More in 2022

It’s 2022, and times are changing. The relationship between employee and employer has changed. Many workers are demanding they be paid more for their time. Companies are being pushed to meet those demands in order to attract and retain top talent.

Everybody is Feeling Inflation

If your company has started to feel the effects of inflation, so have your employees. Many employers are planning to increase wages by about 3.9% in 2022, and they cited inflation as the reason why. However, the cost of general goods and services has increased by 6.2% in the last year. Anyone receiving less than a 6% raise will still struggle to see a difference in their wages. So, it is becoming more necessary for employers to pay more.

Of course, employees will benefit from this by having more leverage over negotiating their salaries with their employer. That being said, many workers are choosing to leave positions when their companies can’t meet their needs. After all, prices are going up. They need to pay bills too.

New Hires and Different Talents Needed

Another reason employers are being pushed to increase wages is that many companies are looking for new talent. They need to address different needs than they did before, and, in some cases, companies are using new technology. There is a need to find candidates whose talents will help the business continue to grow in the current industry. To do this, employers must raise their wages. Most professionals won’t consider moving jobs or taking a new job if the right salary isn’t offered.

In some cases, employers may be willing to train you on the job to garner the skills they need. If you are seeking a new career, this could be a great chance to get hands-on training and learn the industry from the ground up. Consider the experience an additional benefit of the job.

You’ll Pay Top Dollar For Top Talent

There is a talent war in today’s job market. Unfortunately for employers, this means you will pay top dollar for top talent. They know that their skills and expertise are in high demand. It is beneficial for job seekers, though. It gives candidates more leverage when negotiating job terms. They have more control when naming their salaries and what benefits they receive.

Other Benefits Help Attract New Talent

Speaking of benefits and offering competitive wages, employers are also putting thought into how they can make their benefits packages more attractive. Providing things like student loan repayment, paid days off, mental health days, flexible scheduling, health insurance, dental, etc., will help you gain the attention of new recruits.

This is also beneficial to candidates because they can have more control over the benefits they are offered. For instance, if you want more flexibility in your schedule and the option to work remotely, you would discuss that with the employer when negotiating your contract. You can negotiate other benefits such as paid holidays and vacation too. This is your chance to see what the employer can provide beyond traditional wages.

Call On Our Recruiters for Expert Advice

Working with professionals like the recruiters at Top Notch Personnel can help you manage the changing wage expectations. Our team can assist you with everything from recruiting to payroll. Contact us to learn more about our services.

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