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Infographic: Employers rethink work and rewards to address labor, inflation worries

Findings from the 2022 Mid-year Compensation Actions Survey

August 11, 2022

Organizations are taking action and changing their pay plans to compete in a challenging environment.
Compensation Strategy & Design|Talent|Total Rewards
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Infographic: Employers rethink work and rewards to address labor, inflation worries

Employers rethink work and rewards to address labor, inflation worries

Attraction and retention challenges persist in the face of ongoing inflation

66% of organizations have increased recruitment efforts in 2022. Only 6% decreased recruitment activity.

Employers are most likely to experience difficulties attracting or retaining talent in these groups:

  • 71% - Talent with digital skills
  • 66% - Professionals (non-management)
  • 61% - Non-exempt hourly employees

Percentages indicate “to a moderate or great extent”


Organizations use financial and non-financial levers to address talent challenges
  • 86% - Hiring people higher in the relevant salary range
  • 84% - Providing increased workplace flexibility
  • 81% - Offering sign-on bonuses
  • 55% - Increasing/Targeting use of training opportunities
  • 65% - Offering retention bonuses
  • 47% - Using spot rewards

Percentages indicate “taking action”


Employers use a range of approaches to tackle competitive compensation pressures

On average, organizations have taken one action and are planning/considering two additional actions

  Action taken Planning action Considering action
Further increased/Will increase the focal annual salary budget for 2022 23% 14% 30%
Budgeted/Will budget additional funds to make salary adjustments throughout year as needed 22% 13% 33%
Have used/Will use retention bonuses more extensively 21% 7% 30%
Adjusted/Will adjust the salary ranges (minimums, midpoints, maximums) more aggressively 18% 16% 30%
Have increased/Will increase variable compensation 8% 6% 24%
Have/Will deliver more frequent salary adjustments 7% 7% 24%
  • 4.0% - spent/will spend
  • 3.0% - initial budget

Base salary increased by about 1% of payroll

*Based on respondents who’ve increased or plan to increase their focal annual salary budgets


75% of organizations that delivered or are planning to deliver salary adjustments more frequently are doing so for targeted groups

These organizations are most likely to target:

  • 63% - Professionals (non-management)
  • 49% - Non-exempt hourly employees
  • 48% - Talent with digital skills
  • 46% - Managers (excluding executives)

How many times per year are employers delivering increases?*

  • 55% - As needed
  • 29% - Two times
  • 10% - Other
  • 3% - Three times
  • 3% - Four times

Organizations that enhanced or are planning to enhance retention bonuses focus on:

  • 82% - Managers (excluding executives)
  • 80% - Professional (non-management)
  • 52% - Talent with digital skills

Organizations that increased or plan to increase the use of variable compensation focus on:

  • 80% - Managers – off-cycle long-term incentives
  • 76% - Professionals (non-management) – spot bonuses

*Based on employers providing or planning to provide increases more frequently


Actions to take now!

  • Refine your compensation philosophy and outline the purpose of each element of pay
  • Review and update salary structures while assessing internal pay equity concerns
  • Define the talent and work strategy to optimize compensation spend
  • Enhance HR and manager capability to address talent and rewards challenges

Source: The 2022 Mid-year Compensation Survey, North America results. A total of 884 employers participated in the survey, which was conducted between May 26 and June 7, 2022. Respondents employ 15 million employees across a range of industries.


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