In episode 153 of “The JoyPowered® Workspace Podcast,” JoDee and Susan discuss strategies for compensation in a rapidly rising inflation rate environment with compensation expert Megan Nail.
In the US, we’ve been experiencing our highest inflation rate since 1981. Figuring out how to lead businesses and create human resource strategies in this time of high inflation is challenging, so compensation expert Megan Nail joins the show to share her expertise.
Inflation and wage increases are different – inflation represents changes in market goods while wages are based on the supply and demand of labor – but they’re related because typically, when we see inflation go up dramatically, we see a rise in wages. It’s important to remember that wages are generally much more stable than the costs of goods that we’re talking about with inflation. Typically, we see the biggest impact on wages in the entry level jobs, while the higher salary range levels are slower to change.
It’s important to stay up to date on your organization’s financial situation, be transparent in communication with your employees, and commit to being flexible as the market changes. Higher level strategic messages should come from the organization’s leadership, but it’s also important to equip managers with an appropriate level of detail so they can have more personal conversations.
In this episode’s listener mail, we’re asked about when to start documenting and move forward with terminations when there is no improvement while working through a performance improvement plan. In the news, inflation is affecting job seekers’ behaviors.
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