Preliminary Data Shows COVID Impact on 2021 Wages and Workplace Practices
The initial summary of preliminary data from Employers Group’s 2021 HR Budgets and Human Capital Benchmark Survey was released to participants earlier this week. The final report is expected in late October and will provide full survey results, benchmark data and the first detailed look at the new reality for workforce planning. As always, it will be a critical forecast survey on employer budgets for the upcoming year and will include projected salary increases and a wide array of labor trends that California employers can anticipate in 2021.
The survey is still open, so please give us 10 minutes of your time to complete it:
SOME EARLY HIGHLIGHTS
As expected, the early results found in the Flash Report are in fact quite fascinating. A few of the highlights include:
- Wage and Salary Increases Will Slow Down in 2021 – While 66% provided increases in 2020, only 58% are currently forecasting increases in 2021.
- The Percentage Amount of Merit Increase Will Decrease in 2021 for All Employee Types – Compared to 2020, the amount of increase will be lower by: Hourly Production (13.3%); Non-Exempt Office (17.8%); Salaried Exempt (6.1%); Executive (24.5%).
- Layoffs and Decreased Staffing are Not Anticipated – Companies reporting that they anticipate layoffs or decreased staffing are far outnumbered by those anticipating moderate to significant increases over the course of 2021.
- The Impact of COVID-19 Will be Felt for a Long Time – Over 17% of companies are projecting that the negative impact of COVID-19 on their compensation and benefits programs will last through the end of 2021 and 10% projecting an impact beyond 2021.
- Employees Like Working Remotely – Working remotely has had a positive impact on the level of employees’ work satisfaction according to 61% of the respondents, with only 11% reporting a negative impact.
Please be sure to let your HR colleagues know that the survey is still open for participation through this link: