In this blog post, we will discuss how inflation will impact 2022 new hires. With the current economy, business owners need to understand how changes in inflation can affect their hiring plans.
We will go over the current inflation situation in the US and how it will impact salaries. By understanding these circumstances, businesses can plan ahead and make sure they are able to attract top talent in the years to come.
Inflation in the Us: What Business Owners Can Expect in 2022?
Inflation in the US is at its highest level in nearly a decade, and economists expect it to continue to rise in the coming year. Jeff Cox explained that by June 2022, the consumer price index increased 9.1% from a year ago, above the 8.8%. In addition, gasoline, groceries, dental care, and workers’ hourly wages fell by 1%.
“The reality is that inflation is always happening, so small-business owners need to be prepared for it. It’s important to understand how inflation affects your business and to come up with solutions to manage it,” says Camberato.
Moreover, Camberato explains some of the most critical impacts of US inflation on small businesses, including higher costs, rising prices, cutting overhead expenses, and tighter profit margins.
Given inflation is expected to rise and the US is facing a recession, business owners must understand how these economic events can affect their new hires. Do you want to learn how to be prepared for US inflation? Read our blog post.
Learn more about inflation in the US in this video.
How Can the US Inflation Affect New Hires?
If inflation continues to surge, it can impact wages and benefits for employees. Francesca Di Meglio describes four ways inflation and higher prices will affect HR management and recruitment. We recap these impacts for your information:
Companies won’t manage to pay the return to the office. Some employees will begin to quit because they won’t’ be able to afford costs derived from commuting, such as lunch, gas, and childcare. This explains why companies must consider salaries and wages seriously.
Compensation and benefits packages. HR specialists will need to revaluate their compensation and benefits packages for employees if they want to remain competitive.
Currently, the scarcity of human talent is raising salaries, but inflation is still a substantial obstacle to offering candidates what they’re asking for.
Budget concerns. Budget cuts are expected if inflation increases, meaning fewer resources for learning and development, employee engagement, and training opportunities. If you’re concerned about your budget, check our post on staffing plans.
Travel constraints. Increased gas prices, flights, and travel budgets will restrain companies and employees from engaging in in-site professional meetings.
You should be proactive and plan for inflation now so that your small business is ready when it inevitably affects salaries and hiring down the line. If you can stay ahead of the curve and offer competitive wages and benefits, you may be more likely to attract top talent in a tight labor market.
What steps are you taking to prepare for rising inflation?