Escalating inflation has employers and compensation managers puzzling over their compensation strategies. Cost of living, cost of labor, minimum wage, living wage, recruitment, retention, compression—they’re swirling around in our heads like uninvited confetti!
The annual inflation rate for the United States was 8.5% for the 12 months ended March 2022, according to the U.S. Labor Department’s Bureau of Labor Statistics. In fact, inflation is at its highest level since 1981. Just think: Well over half the workforce has never seen price increases and shrinking dollar values like we’re seeing today!
How should employers respond? How are employers responding?