Midyear Raises On The Way

We've heard companies were flirting with adjusting salaries for inflation. Now, they're putting their commitment issues aside and making it official! 💍

In an effort to retain employees, big-name companies like Exxon and Microsoft are shelling out bonuses and raises ahead of schedule. 📈

 

Here’s Five Fast Facts on midyear bonuses and raises:

  1. 😎 Summertime Surprise -  About 85% of the employees at T. Rowe Price got a 4% raise effective July 1st, and it's in addition to their annual raises. T. Rowe employs more than 7,500 full-timers
  2. 🧨 Blowin' Up - U.S. inflation hit 8.6% in May, which was the fastest rise in 41 years.
  3. ⬇️ How Low Can You Go - The unemployment rate in May was 3.6%, which was close to its lows prior to the pandemic. 
  4. 🧑‍🏫 Teacher's Pet Rewards Club - Experts say if the economy gets any worse, companies could begin to be more picky about who they give raises to. Translation: those high achievers you hate are probably all getting new (hopefully electric) cars. 
  5. ⚖️ Breaking Even - So far in 2022, companies have increased base salaries in the U.S. by 4.8%. But prices have been rising too, and it's still tough for people to catch up.

🔥Bottom line: Sure, no one's complaining about getting a summertime bonus. But inflation's so bad, even the old people are going back to work. Raises are going to have to stay pretty competitive to keep workers happy, but it's good news that company leaders have their heads in the right places.

Are you getting a raise this summer? Let us know by connecting with us on Social Media and be sure to share this newsletter with any friends & coworkers!

Btw, If you’ve read this far and haven’t yet signed up for the weekly Paycheckology newsletter, CLICK HERE!