Food prices are up, rent prices are up, and gas prices are so high that Uber and Lyft drivers are considering quitting. Inflation is 7.5%, the highest it’s been since 1982. Yet it’s unlikely that wages will rise correspondingly.
According to a March 2022 study by Mercer, a human resources consulting firm, 45% of employers don’t factor inflation into salaries and less 25% said they will be making changes to their salary budgets because of inflation. Yet the same survey found that 77% of respondents cited compensation as their main reason for turnover.
While most employers discuss salary budgets for the coming year in September, it wasn’t clear to most people last fall that inflation was here to stay.
it’ll take some time before employers manage to adjust to the new inflation-normal and adjust wages accordingly.
Read the full article from Fast Company here.
