"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."
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:
- To adjust for the higher cost of living (30%)
- To reflect current market rates (23%)
- 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
In addition to setting competitive salaries, companies must consider the entire employee experience and deliver programs that satisfy their professional and personal needs,” McDonald says. “Career advancement and remote options are two big priorities for workers today."