What’s A Pay Increase?
So, here we are. A controlling government, printing astronomical amounts of money, with nowhere near the goods and services this population wants to consume.
It’s the very definition of inflation.
To confirm, U.S. productivity dropped 5.2 percent in Q3, 2021. That’s the biggest drop in 60 years.
Too much money, chasing not enough stuff.
That’s inflation.
Missing Work Force
Can we make more stuff? It doesn’t look like it.
Friday’s January 7, 2022 Employment Situation Summary reported that total nonfarm payroll employment rose by 199,000 in December. That’s all great, until you realize that consensus expectations were well over 400,000.
The NASDAQ tanked 4% on that news.
Roughly $3 trillion in “stimulus,” and this is all you get. Traders didn’t like that.
Missing Pay
American professionals can’t be too happy, either.
They saw the highest pay increases in 20 years wiped out by the highest inflation in 40 years.
Real wage growth is negative.
Recruiter’s View
Some Hiring Authorities will doubtless be shocked when applicants decline on an offer with a significant pay increase. That can easily happen during raging inflation.
Remember, much of today’s work force has never experienced insane back-to-back-to-back price increases.
Typical solutions:
– Incentive plans.
– Acceptable pay for exceptionally productive employees.
– Low pay to start on a fabulous career path.
Going forward, each situation may require special attention. The biggest reason: Many Candidates coming available are leaving employers who broke the faith. Either the employers can’t or won’t deliver on past promises.
This influences how your offer is perceived.
And that influences how your Candidate responds.