Do you want to know if you’re still paying a competitive wage? You are not alone. Nearly every construction company considers employee salaries very carefully.
It can be tricky to determine if you are still competitive while keeping your budget in mind. Consider some of the following insights into construction salaries for 2023.
Many in the U.S. expect a 4.6% increase in salaries for 2023. This will make it the largest increase in fifteen years.
When companies were surveyed, over 70% had gone over budget in the last year. This includes an overall increase in pay expenditures by 4.2%.
You can’t talk about the wage hike without discussing the alarming rate of inflation across the global economy. Because of this, we will see companies use a variety of measures to help their staff out.
While it is true that the last year has seen lowered inflation readings, companies still have catching up to do regarding employees’ salaries.
It is interesting to note that more than two-thirds of construction companies cited the competitive market as a reason to increase wages. This is especially true with the jobless rate at 3.7%.
It is also important to consider that more than three-quarters of companies are still have difficulty finding and keeping employees.
All this adds up to a need to keep your wages competitive.
Retain Without Higher Pay
This leads many companies to look for creative ways to keep their employees around, such as the following:
- Two-thirds allow for more flexibility in the workplace.
- Half of the companies have stated they are looking for other ways to improve the employee experience.
This may come from increased vacation and sick days, better health packages, more company gatherings, and other benefits. Other areas to consider for employee retention are room for career training and growth and team-building retreats.
Some Key Points
- Some studies show that salaries will increase by 4.6% in 2023.
- Two of the biggest reasons are a refined labor market and high inflation.
- Seventy percent of companies went over budget in the last year.
- Three-quarters of companies are having a difficult time attracting new candidates.
Construction salaries will continue to rise in 2023. Inflation is a major driving force, as is the labor shortage. This means that construction companies need to offer competitive salaries and packages to attract and retain talent.
Many companies are also looking for alternative benefits aside from increasing salaries, such as workplace flexibility or health packages. The bottom line is that you need to ensure your construction company is attractive to candidates and current employees.
Are you a hiring authority needing construction talent? Submit a search request today.