Challenges surrounding the fight against pay inequity – as well as the current, changing economy itself -have resulted in an intense war for talent.
2022 has certainly been a topsy-turvy year. Unemployment is at record lows (lowest in 50 years), but inflation has also been its highest (hovering between 8% and 9%).
As a direct result of the ongoing COVID-19 pandemic, 2022 finds us facing high inflation rates. We’ve seen prices rise 7% – in everything from cars and housing, to gas, food, and furniture.
As with our review of 2022 compensation budgeting in the last Astronology®, predictions on how variable compensation will unfold are challenging.
Current Economic Climate and Impact on 2022
2021 has been a year of surprises in administering employee compensation programs. Among the changes and challenges in 2021 are the following:
These factors have led many to rethink past and current compensation strategies as we move into 2022. According to SHRM, when planning for 2022:
Consider the future of the organization.
As we plan for 2021, we need to consider COVID-19’s impact on 2020 compensation decisions for nonprofit executives. For the most part, nonprofit executive compensation came to a halt.
2021 has been a year of uncertainty, especially in terms of compensation increase budgeting. As a result, organizations around the country are reexamining their variable compensation strategies and the impact on employee engagement & recognition.
There is no doubt that 2020 has been a year for the record books. When it comes to forecasting compensation trends for 2020 and 2021, there have been challenges.