Survey of 436 employers and 305 workers in the U.S. suggests pay raises are on the rise as companies prioritize employee retention, engagement, and financial health
FREDERICK, Md., March 1, 2023 /PRNewswire-PRWeb/ -- A new iHire poll suggests 77.9% of employers gave pay raises in the past six months due to merit, performance, pay compression, or the rising cost of living. This implies that a majority of employers are prioritizing employee retention, engagement, and financial health despite economic downturn concerns.
Of the 436 employers who responded to iHire's poll, just 22.1% had not given raises recently, citing the following reasons:
- 69.6% couldn't afford to give raises.
- 32.6% were preparing for economic downturn or tightening their 2023 budgets.
- 13.0% reported poor or stagnant employee performance.
- 13.0% were unsure how to determine fair compensation.
"Compensation is top of mind for employers and their workforces," said Lisa Shuster, Chief People Officer at iHire. "Now is the time for organizations to ensure they are compensating employees fairly while avoiding pay compression. The good news is that most employers do not appear overly worried about a recession and continue to invest in their most valuable business asset: their people."
iHire also surveyed 305 workers and found that 23.9% of respondents had asked for a raise in the past six months, and 60.3% got a raise upon asking.
Of the 76.1% of workers who had not asked for a raise:
- 50.0% already received a raise recently.
- 25.6% did not know how to negotiate salary.
- 23.2% were afraid to ask or approach their supervisor/manager.
- 11.0% did not think their performance was deserving of a raise.
"Employees should do their homework to know their worth and advocate for themselves when it comes to compensation," said Lori Cole, Certified Career Coach and Advisor at iHire. "Researching average salaries for their career title in their industry and geographic location can equip them with the data to negotiate a fair salary with confidence. However, workers should also consider benefits such as flexible scheduling, remote work, health insurance, PTO, and more when making career decisions."
Related Resources
Looking for job search guidance, including how to negotiate salary? Download your free copy of iHire's 2023 Job Search Planner: https://go.ihire.com/cr625.
Need assistance with a pay audit or compensation analysis? Partner with iHire's HR Services & Consulting experts or browse our Employer Resource Center.
Survey Methodology
436 employers and 305 workers in 57 industries across the U.S. responded to iHire's poll in February of 2023. All decimal points are rounded to the nearest tenth. For some questions, multiple answers could be selected so percentages add up to a sum greater than 100%.
About iHire
iHire is a leading career-oriented platform that powers a family of 57 industry-focused talent networks, including WorkInSports, iHireVeterinary, iHireDental, iHireConstruction, and iHireChefs. For more than 20 years, iHire has combined advanced job matching technology with our expertise in the talent acquisition space to connect job seekers with employers in their desired sector. With an industry-specific, candidate-centric, and data-driven approach to recruitment, iHire helps candidates find meaningful work and employers find unique, high-quality talent – faster, easier, and more effectively than a general job board. Visit http://www.iHire.com for more information.
Media Contact
Kristina Kelly, iHire, 18777984854, [email protected]
Kristina Kelly
SOURCE iHire
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