U.S. companies are expecting to pay an average 3.4% raise to workers in 2022

According to a survey, employers in the U.S. will give their workers an average 3.4% raise in the year 2022.

Wage growth is projected to be faster than actual raises paid in the prior two years, according to a poll of 1,004 companies conducted between October and November.

The senior director of work and rewards at the company said that inflation is part of the equation. The bigger piece is the talent race.

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Companies expect to pay average raises across positions, from entry level to more senior workers, according to Jennings.

A record 4.5 million workers quit their jobs in November, a phenomenon that has been dubbed the "Great Resignation."

According to economists, the number of workers in the labor force has been reduced due to public health fears and other factors.

The leisure and hospitality sector has been hardest hit by labor shortages.

The demand for labor has led to employers increasing wages. The tight labor market was cited as a reason for companies to increase their budgets for raises.

More companies say inflation is a factor in higher pay. The cost of living is growing at its fastest annual pace in about four decades, as the Pandemic has caused supply lines to be snarled and consumers to shift their purchases to more physical goods. Employers may want to increase pay to keep up with rising costs.

Corporate profits increased in the year 2021, giving companies more flexibility to increase pay. More than a third of companies said they were increasing pay because of stronger anticipated financial results.

32% of companies increased their salary projections over the course of a few months. The average increase in worker pay was 3% in June 2021.

The average raise for employees was 2.8% in 2011.

Career advancement, mental well-being programs and other workplace elements are some of the ways companies are competing for workers, according to Jennings.