3 Ways to Fight Wage Inflation Without Raising Wages

From pandemic to Sansdemic…the talent crisis continues to develop new challenges for employers. The latest difficulty is wage inflation.

Many workers received their largest raises in years in 2021 as employers scrambled to retain talent during the Resignation Boom. According to the U.S. Bureau of Labor Statistics, the national average raise was 4.5% in 2021, the biggest boost in years. Still, with the consumer price index for all items hitting a record 8.5% in March of 2022, employee wages can’t keep pace with inflation.

With supply chain difficulties expected to continue due to the pandemic and continuing conflicts in Europe, experts predict inflation will continue to rise in the coming months.

With employees feeling the pinch of price inflation on things like food, gas, and rent, employers may have to consider raising wages or lose their best employees to “greener” pastures. To add another wrinkle, employees who remained with their employers during the Resignation Boom report feelings of overwork and burnout due to being understaffed.

How can employers attract and retain employees without breaking the bank in 2022?

If raising wages or offering an annual bonus isn’t an option, employers can focus on creating value for job seekers and employees in other ways, including:

Create A Great Candidate Experience

Job seekers begin evaluating your company from the first moment of contact. Try to create a welcoming, transparent, and friendly experience for every potential candidate. Poor communication—or no communication—is the quick way to lose talent! Consider these tips for creating a welcoming candidate experience:

• Keep candidates informed at every step of the process.
• Audit your process to create consistency among recruiters and recruiting methods.
• Make it easy to apply and search for jobs on desktop and mobile.
• Showcase your brand on social media.
• Create a positive work culture.
• Learn what today’s candidates value in a job and adapt your benefits package and professional development opportunities to meet their desires.

Nurture Employees

The pandemic made many workers realize what they value in life—and work. Making your company a rewarding and enjoyable place for your employees to devote their time and energy will increase engagement and retention. Solicit feedback and offer employees additional benefits and perks, like:

• Flexible work options
• Family-friendly benefits
• Wellness perks
• Phased retirement
• Paid volunteer opportunities

Work With PrideStaff

Your local PrideStaff office can leverage powerful tools to help you stay optimally staffed without breaking the bank. 

Supply and Demand Portal. A PrideStaff office can run a complimentary supply and demand report for your organization. This report provides real-time insight into how many active job seekers there are for a specific job versus how many other companies are trying to recruit for the same role. This tool allows you to gauge the supply and demand for talent and adjust your salary offers accordingly.

EMSI. Your local PrideStaff office has access to EMSI, powerful labor market analytics that give you insight into job posting comparisons, compensation data, market trends, and more. Make better decisions based on hard data provided in a customized report. 

Knowledge is power! Contact your local PrideStaff recruiter for your free reports today.

Learn more about smart staffing during a demographic drought:

Building Your Talent Pipeline to Compete in the Sansdemic

A Wake-Up Call for Company Culture: How Your Business Should be Shifting