Smart Companies Will Increase Workers’ Compensation Due To Runaway Inflation

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The U.S. is still experiencing the lingering effects of the virus outbreak, worried about the potentially ruinous confluence of inflation, recession, layoffs, the possibility of stagflation— not seen since the 1970s— a bear market in securities, war, and increasing costs.

Companies have options. In addition to raises, businesses can offer bonuses, stock options and other forms of remuneration. In a January 2022 survey conducted by Gartner of 71 companies, around 37% of organizations self-reported that they are planning to consider inflation with. Unfortunately, only 13% intended to raise the compensation for all employees, due to rising inflation. Since that time, inflation has continued to rapidly increase.

of 4% or more this year, and a plurality of organizations are growing their salary merit-increase budgets by 5% or more." While it's good to see that action is being taken, the single-digit increases may not be sufficient.By now, it should be glaringly obvious to business leaders that inflation is taking a big bite out of their employees’ paychecks. For many people, it feels that they are earning less money, as the dollar is devalued and losing its purchasing power.

If a person is allowed to work remotely, they won’t have to commute, which will cut down on costly gasoline consumption. If they take mass transit, which is expensive, there will be a reprieve on those expenses as well.

 

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