Get Pay Right™ - EP 6:

How Historic Inflation is Impacting Compensation

Welcome to the Get Pay Right podcast! This episode focuses on the hot topic of inflation. Rising to a 40-year high, both employees and employers are feeling inflation’s impact on paychecks. Host Kevin Plunkett talks with’s David Turetsky what levers companies are pulling, and should be pulling, to offset compensation erosion.

June 28, 2022

[03:32 -04:01] Introduction

  • Welcome David Turetsky to the Get Pay Right podcast
  • Today’s Topic: How Historic Inflation Is Impacting Compensation


[06:35 -09:29] State of Economy

  • The Federal Reserve just approved a rare half-percentage-point interest rate increase, its biggest interest rate rise in 22 years
  • There is political influence with upcoming mid-term elections


[09:30 -13:04] What should employers do?

  • Build salary structures again to make sure you are paying accurately and, if not, make the market adjustments
  • Labor market pressures are forcing companies into the trap of overpaying to keep or attract talent, which leads to more salary compression


[13:05 -27:38] Cost-of-Living Adjustments and the Role of Variable Pay

  • Most organizations are now targeting four percent or more of the payroll budget for merit increases, whereas just last fall, the majority were targeting three percent
  • Companies have adjusted their salary levels to reflect current market premiums, with hourly employees and non-managers as the biggest beneficiaries


[27:43 -29:00] Final Thoughts and Closing

  • This is an evolving process; compensation is never done, and we are always reevaluating where we are
  • Thanks for listening!

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