Inflation & Recession Talk: Strategies to Retain Employees
Inflation and recession are on the tip of everyone’s tongue these days, and businesses are looking for ways to keep their workforce intact — even if they can’t provide a significant pay increase. We’ve put together some suggestions to address inflation-related retention concerns.
A recent survey noted that 80% of job seekers expect the U.S. to enter a recession next year, fueling 60% of job seekers to look for a new job before a recession hits. This means now is the time to take action to retain high-performing employees.
One retention strategy is increasing compensation, but that isn’t always an option. Even businesses that have already increased wages or have budgeted an increase in 2023 cannot keep pace with inflation. An average pay raise next year is expected to be 4.1%, which is less than half the rate of inflation reported for June 2022.