As companies consider the impact of inflation on pay and benefits for employees, employee expectations have shifted, elevating employee voice in the workplace. David Kasiarz, Executive Vice President, Colleague Total Rewards and Well-Being at American Express Company, led a panel discussing the significant implications of these trends for employers, and employer responses.
The annual inflation rate sits above 8%, and weekly unemployment claims, as reported by the Department of Labor, continue to inch up, indicating that the labor market remains tight despite the Federal Reserve’s interest rate increases.
Employee expectations are shifting: Panelists noted that employees are expecting higher wage rates and wage pools amid a heated job market, increasing the risk of attrition if employee concerns are not addressed. Employees have demonstrated notably less patience in terms of pay increases, with high expectations from both employees and applicants. In addition, unions are extremely active in this environment, pressing harder during negotiations and engaging in well-publicized strike and unionization activity, including among industries that traditionally have lower levels of union density.
Considerations on wages: Lori Wisper observed that there is little evidence of non-union employers offering off-cycle increases due to inflation. With inflation having remained below salary budgets for the last 10 years, and the cost of living fluctuating more than the cost of labor, employers are considering conservative approaches to prevent layoffs. Dina Barmasse-Gray noted the Cheesecake Factory assesses all markets and jobs quarterly to ensure the company is paying competitively, with an eye toward other items employees want, such as flexibility, career growth, and benefits.
Meeting employee expectations outside of pay: Mr. Kasiarz said employers can often gain an edge in anticipating employee needs by providing a suite of non-traditional benefits which are often very well received at modest to low cost. Mike Fitzsimmons relayed that Boeing has initiated a program offering up to 80 hours of paid tutoring for children of employees, as well as a plan that provides matching contributions to student loan payments. Ms. Barmasse-Gray said The Cheesecake Factory offers flexible schedules for hourly workers, as well as earned wage access, meaning workers can access pay the day after the work is performed.
The webinar is a continuation of a series on HR issues and inflation. Our next installment titled “Inflation and Employer Health Care Costs: Navigating the Perfect Storm Ahead” is on October 26 at 12:00–1:00 p.m. ET. Join us for a discussion on inflation and health care considerations, including costs.