Will Inflation Impact Annual Pay Raises?

Did you receive a pay raise last year? If so, how much was it —1%, 2%, 5%? Chances are if you received an increase in pay last year, it was not enough to keep pace with the current inflation rate. The annual U.S. inflation rate hit 9.1 percent in June, a new 41-year high, according to the U.S. Department of Labor. And Americans are feeling the pinch. The price of most consumer goods (i.e., food, clothing, housing, utilities, transportation, gasoline, etc.) has increased. Employees are worried. But they are not alone. Employers, too, are concerned. According to a survey conducted by SHRM, 73 percent of human resource professionals indicated that inflation was a concern in their organization. Among those in SHRM’s survey who said inflation was a concern, 87 percent said their “highest concern” was how inflation would affect employees’ lives. According to a Wall Street Journal (WSJ) article, many organizations offer midyear raises and bonuses to retain employees. What about libraries? Will they be able to give raises at all, even if it’s not mid-year? If not, will libraries lose staff to other higher-paying industries? This is something that bears watching.