Employee’s have a positive outlook about obtaining raises in their companies as the U.S. unemployment rate falls to a three-year low in February 2012, according to SHRM Online. Employees are becoming increasingly optimistic about their company’s growth and ability to sustain employees. According to SHRM Online:
43% of employees expect pay increases over the next 12 months
45% of men expect a pay raise while 40% of women expect a pay raise
49% of young workers (18-34 years old) are more optimistic than older workers at 34% (55 years old and older)
What does this mean for companies? These employees have already set their own expectations of anticipated pay increases. Employers need to be in tune with their employees to ensure that employees’ expectations are in-line with the reality of what the employer can offer employees. Employee morale will drop dramatically if the employer does not match the employee’s expectations. This can (and will) hurt employee productivity, increase employee turnover, and hurt the company’s bottom line. Employers need to be cognizant of the expectations of employee in all areas of the business, but especially when it comes to monetary expectations.
Do you feel that your company is aware of your expectations when it comes to pay increases? Have you let your supervisor know what your expectations are?