In today’s candidate-driven market, talent attraction and retention are top priorities for business leaders, and how they remunerate is crucial in this. BIE Executive surveyed 104 C-Suite Executives to get their take on where salary inflation will settle in 2022.

89% of survey respondents said they anticipated experiencing hiring difficulties or labour shortages in 2022 and 76% admitted they were looking to increase salaries as a means of attracting and retaining talent.

42% of respondents said they were budgeting for a 2-3% increase in salaries. When asked the same question, how much they had budgeted in 2021, 41% responded with the same (2-3%).

When asked how much they had budgeted for salary increases in the year to come, 30% of respondents said they had budgeted for a 4-6% increase in salaries in 2022, a 50% increase compared to 2021 where only 15% of respondents admitted to a salary increase of the same amount.

In addition to this, 94% admitted they were concerned about the impact of employee attraction, recruitment and retention on their organisations in 2022.


Feedback from BIE’s community of Finance Leaders:
Whilst companies are trying to hold payrises at 3%, they know they won’t secure the best talent and if they aren’t increasing above inflation people will start to leave in 2022.

Written by

Simon Moore

Simon is responsible for leading BIE’s CFO & Financial Leadership team and selling the BIE proposition to companies who are going through change.

As a member of BIE’s executive leadership team, Simon’s focus is on supporting a wide variety of clients across all c-suite functions who are typically looking to enhance their businesses’ ability to perform. These companies range from FTSE and large privately owned/equity backed businesses through to, SMEs and start-ups with a growth agenda who need to mature their enabling functions.

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