August 4, 2022

Inflation + market fear meets pay equity

Authors:

Partner at Hirewell. #3 Ranked Sarcastic Commenter on LinkedIn.

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:

  1. A below market offer, because the person’s manager is underpaid.
  2. One org straight up not hiring at one level. Because they’d have to give everyone else a pay bump.
  3. A client giving everyone in the company a 5% increase across the board. Just for inflation. On top of yearly merit increases.
  4. 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.

Partner at Hirewell. #3 Ranked Sarcastic Commenter on LinkedIn.

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