Despite high inflation and low unemployment rates, a majority of American workers are expecting to receive a pay raise this year.
According to a new survey of 1,000 adults conducted by Norwalk-headquartered OperationsInc, 62% of respondents believe they will see a salary bump-up this year, with 41% predicting that raise to be larger than what they received last year.
A majority (58%) of workers are expecting a pay raise of 5% or less, but half (45%) say they would not be happy or satisfied with a pay raise of less than 6% of their salary. Expectations for increases this year differ widely between men and women.
Nearly three in four male employees (73%) expect to get a pay raise at the end of the year, while only half of female workers (49%) expect the same. Men are also far more likely to expect larger raises than last year (47% vs 35% of women), a pay raise of greater than 6% (47% vs 19% of women), and a year-end bonus (60% vs 41% of women).
“Winning the war for talent can’t be about paying more. Employers who have paid what the market demanded this year now have issues with pay equity and overall compensation structures,” says OperationsInc CEO David Lewis. “Companies need a multi-faceted strategy, developed alongside experts, designed to attract and retain, where employees are asked what they value, resulting in an approach that meets everyone’s needs.”
