Inflation of Your Payroll

 

    Inflation is taking a toll on everyone’s wallets, both business owners and employees. Rising costs of goods and limited supply chain has made it harder and more expensive to go about your daily life, and employees may look to their employer to help them out.

    The Bureau of Labor Statistics (BLS) reported over a 5% increase in average hourly wages to go along with an inflation rate increase of 8%. While the inflation rate is higher than the wage increase, it was still a significant jump. Many employers may not be able to afford the wage increases being seen throughout the economy and will have to look to other ways to retain their employees. Employees will find value in jobs in more ways than just salary. PTO, a positive work environment and competitive employee benefits all encourage employees to work with a certain employer, even if the compensation is different.

    A good benefits package can help make up for lower wages or excel you past the competition in terms of how employees see you as a workplace. Even if you can’t afford to offer the same wages as another employer, it’s important to show employees that you care and present them some favorable substitutes. There are many ways to do this, and you can choose what works best in your situation. A reminder that you care and you are doing the best you can for your employees goes a long way.