56% Of U.S. Companies Have Experienced Pay Compression In The Last 12 Months, Robert Half Research Finds

Rhea-AI Summary

Research from Robert Half reveals that 56% of U.S. companies have faced salary discrepancies between new hires and tenured employees in the last year. To address this, 62% of these firms are increasing salaries for existing staff. Additionally, a survey shows that 34% of workers haven't received a raise in a year, with 62% planning to request one soon due to rising living costs and market rates. Employers recognize the importance of fair compensation to retain talent amidst changing market conditions, with significant attention on overall employee experience and career advancement.

Positive

• 62% of companies are increasing salaries for existing employees.
• Robert Half Salary Guide offers benchmarking data for over 500 positions.

Negative

• 56% of companies have observed salary discrepancies between new hires and tenured staff.
• 34% of workers have not received a raise in the past year.

• Of those, 62% are increasing salaries for current staff to help close wage gaps
• Robert Half Salary Guide features data to benchmark compensation for 500-plus positions

MENLO PARK, Calif., April 8, 2022 /PRNewswire/ -- Many companies are taking measures to increase pay equity among workers, research from talent solutions and business consulting firm Robert Half shows. More than half of C-suite executives surveyed (56%) said they have observed salary discrepancies between new hires and more tenured staff in the past year. Of those, 62% are regularly reviewing compensation plans and increasing salaries for existing employees, when appropriate, to align with current market rates.

"Market conditions have shifted dramatically, and savvy employers are stepping up to address salary gaps and ensure all employees are being paid fairly," said Robert Half senior executive director Paul McDonald. "They know that taking a cautious 'wait-and-see' approach on compensation is risky and can lead to the loss of great talent."

Workers Expect a Raise
There are several factors at play when it comes to wage growth, and employees' expectations are among them. In a separate survey of more than 1,000 U.S. workers, one-third of respondents (34%) said they have not had a raise in 12 months and another 16% received one but were disappointed with the amount. In addition, nearly two-thirds (62%) plan to ask for a raise this year, with the top reasons being:

1. To adjust for the higher cost of living (30%)
2. To reflect current market rates (23%)
3. To account for additional job responsibilities (22%)

If workers don't get a raise:

• 31% will ask to revisit the salary conversation in a few months
• 27% will look for a new job with higher pay
• 23% will ask for more perks

View infographics of the research highlights.

McDonald noted, "In addition to setting competitive salaries, companies must consider the entire employee experience and deliver programs that satisfy their professional and personal needs. Career advancement and remote options are two big priorities for workers today."

Visit roberthalf.com/salary-guide for the latest information on salary and employment trends for more than 500 positions across the finance and accounting, technology, administrative and customer support, marketing and creative, legal, healthcare, and human resources professions in the U.S.

About the Research
The online surveys were developed by Robert Half and conducted by independent research firms. They include responses from 376 C-suite executives across a diverse range of industries (collected February 25 to March 8, 2022) and more than 1,000 workers 18 years of age or older (collected March 3-11, 2022) in the U.S.

About Robert Half
Robert Half (NYSE: RHI) is the world's first and largest specialized talent solutions and business consulting firm that connects opportunities at great companies with highly skilled job seekers. Robert Half offers contract, temporary and permanent placement solutions and is the parent company of Protiviti^®, a global consulting firm. Visit roberthalf.com and download our award-winning mobile app.

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SOURCE Robert Half

FAQ

What percentage of companies are increasing salaries to reduce wage gaps?

62% of companies are increasing salaries for existing employees to address wage gaps.

How many workers plan to ask for a raise this year?

Nearly 62% of workers plan to request a raise this year.

What is the main reason workers want a raise according to Robert Half's research?

The primary reason for requesting a raise is to adjust for the higher cost of living, cited by 30% of respondents.

What did Robert Half's research find about salary discrepancies?

56% of C-suite executives reported salary discrepancies between new hires and tenured staff.

When was the Robert Half salary research conducted?

The research was conducted with executives from February 25 to March 8, 2022, and with workers from March 3 to March 11, 2022.