Despite the impact of the pandemic on employment levels, a recent study by Express Employment Professionals indicates that more than half (52%) of hiring decision-makers in the U.S. expect wages to increase in the fourth quarter compared to the same period in 2019. The percentage of hiring manager planning to raise wages is significantly lower than indicated in a pre-pandemic survey by Payscale conducted between November 2019 and January. That survey found that 85% planned to give base-pay increases.
In the Express Employment survey, 53% of those who are offering pay increases plan to base them on performance, an equal number (51%) plan to base them on standard cost of living and one-third (36%) will base the increases on market rates.
The Express survey also found that one-third of hiring decision-makers expect their companies’ benefits to increase, more than half expect benefits to remain the same, and 10% expect benefits to decrease. However, many indicated that the emphasis will be on non-traditional benefits. Companies citing plans to increase wages and benefits attributed their decisions to the need for a healthy company culture that will sustain their companies through these difficult times.