Inflation has hit everyone, and hard. Employers everywhere struggle to keep up with the expectations for pay rate increases and more.
If you as an employee are still waiting for a raise or perhaps some back pay, what steps can you take to ensure that you get it?
Understanding pay compression
In recent times, an explosion in wage growth occurred across the nation, especially for new workers. This created “pay compression” in return. Employers feel pressure to raise the rate of pay for all workers.
Unfortunately, it is not possible for all companies to do this, especially in the face of recent economic issues.
The impact of inflation
The NPR recently discussed that the Federal Reserve warned about the incoming difficulties of fighting inflation. This has an impact on the pay versus buying power of any individual.
In short, a person’s buying power will likely drop relating to their take-home pay, even with potential pay raises which average about 3.2 percent for 2022.
Despite this issue, people want to get as much pay as possible in order to stay in control of their own life as a consumer.
What are the next steps?
For many employees, taking legal action is the next step. Unfortunately, patience does not last forever. When an employee gives their all for a job and then has to rely on back pay or never gets the promotion they got promised, it makes sense for them to get frustrated.
When discussion with a boss fails, then legal action might be the best thing available instead.