A few quick, asymmetric observations
Inflation + market fear is driving weird decisions around pay equity right now.
4 things I’ve seen in the last month. Some good. Some not:
- A below market offer, because the person’s manager is underpaid.
- One org straight up not hiring at one level. Because they’d have to give everyone else a pay bump.
- A client giving everyone in the company a 5% increase across the board. Just for inflation. On top of yearly merit increases.
- Fat sign on bonuses to land talent. And to punt fixing the pay equity issues until next year.
I’ll be honest: I don’t have the answer here.
On one hand: the “recession” talk warped our brains. Nothing about high inflation, negative GDP but low unemployment (to the point of a labor shortage) makes sense. Trying to apply traditional labels to a market no one has seen before is silly. Square pegs in round holes.
Regardless: it’s in everyone’s head.
On the other hand: it’s not like businesses make decisions solely on media and social chatter. Business dynamics shifted real damn quick. Salary inflation in 2021 followed by a pull back in the tech sector whipsawed companies.
Some have the money to keep up. Some don’t. There’s no easy answer.
????But I promised you it’s never underpaying people.