September 9th 2023.
Prices are rising, but wages remain stagnant. This was the sad reality for many in the U.S. in 2022, when the cost of living was at a 40-year high, accompanied by a rise in gas and food prices. Inflation had declined from 9% to 3%, but still did not meet the Federal Reserve’s target of 2%, as reported by PBS.
Employees were not receiving a pay increase to keep up with the rising prices, and they weren’t being recognized for their hard work either. Talker polled 1,859 employees, of which 46% said they feel “somewhat recognized” at work, while 8% reported they did not feel recognized at all. This lack of recognition translated to not receiving compensation for accomplishments on the job.
The average cost of rent in 2021 was $2,000 a month, a 15% increase over the previous year. But salary increases didn't match up to the rising costs. According to William K. Tabb, professor of Economics, Political Science & Sociology, Emeritus – Queens College and Graduate Center of the City University of New York, the inflation costs were initially attributed to “spending to help those impacted by Covid.”
Workhuman also released a report in January 2023 which showed that 50% of employees feel “somewhat valued” while 10% do not feel “valued at all.” This was due to the fact that diversity, equity, and inclusion efforts were overlooked “as economic uncertainty continues into the new year.”
The reports paint a bleak picture of the current state of employee recognition and compensation. As a result, it is important for organizations to prioritize employee value if they want to stand out from the competition. This means investing in employee recognition and rewards, as well as providing salary increases that keep up with the rising cost of living.
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