Inflation is a top concern among employees, according to a survey conducted by the Society for Human Resource Management Research Institute using SHRM’s Voice of Work Research Panel. Nearly three quarters of HR professionals (73%) reported similar concerns in their organizations.
The survey found the highest concentration of those registering those concerns are being located in agriculture (97%), wholesale trade (95%), utilities and energy (82%), as well as manufacturing (82%).
“Employers recognize that inflation has a major impact on the well-being of their team,” said SHRM President Johnny C. Taylor, Jr. “In fact, SHRM research found that 87% of those worried about inflation said their highest concern was the effect on the lives of their employees.”
Although their employees’ lives were cited as their greatest concern, more than half of the employers surveyed say they are neither considering inflation (26%) nor are not sure if inflation will be factored into annual pay raise decisions (29%).
Concerns about inflation varied by organization size, with 81% HR professionals in smaller organizations (less than 100 employees) more likely to be concerned. Saying the same thing are 74% in medium organizations (100-499) and 67% of in large organizations (500 or more employees).
Employers are forging their own responses. “There is no one-size-fits-all approach to how organizations are handling the situation,” Taylor points out.
“While some employers are re-examining their strategy when it comes to pay, many others are unsure or not currently considering inflation as a factor in their annual pay raises, instead focusing on pay transparency, competitive compensation as well as the overall employee experience.”