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.