Labor contracts of large employers can significantly impact smaller related employers through a series of economic forces. One primary mechanism is the influence of wage and benefit standards set by major corporations within a specific industry. When large companies establish high standards in their labor contracts, it creates a benchmark that smaller employers often feel compelled to meet to attract and retain skilled and experienced workers.

Employers appear optimistic heading into 2024. The recently released 2024 National Business Trends Survey by the Employer Associations of America (EAA) revealed that two-thirds of organizations are expressing confidence in the economy, a significant leap from the 49% reported in the 2023 survey. This positive sentiment is mirrored in executives' projections, with 72% anticipating flat to slight increases in sales and revenue for the upcoming year, compared to 53% in the previous report.

Research from Payscale revealed that the health of an organization in terms of its prospects has emerged as the foremost motivator driving employees to seek new job opportunities.  Payscale’s Retention Report delves into the primary reasons behind employee attrition and the influence of pay transparency. The research findings reveal intriguing insights into the dynamics of the modern workforce.

In a March report released by the Pew Research Center, it was revealed that in 2022, women in the United States typically earned 82 cents for each dollar earned by men in similar roles. This statistic remained stagnant when compared to the year 2002 when women earned 80 cents on the dollar. The slow pace of narrowing the gender pay gap in the 21st century stands in stark contrast to the considerable progress made in the preceding two decades. In 1982, women were earning a mere 65 cents for...

Growing inflation has been the source of much conversation in the past three years.  Much of the conversation revolves around how inflation impacts wages.  A recent article in Forbes provides some good analysis around why salary increases do not always align with inflation. 

One area that has plagued our nation’s recovery from the pandemic has been the sluggish labor force participation rate (LFPR).  According to recent analysis by the Federal Reserve, the February 2023 LFPR was 0.8 percentage points lower than its February 2020 level. This gap in participation amounts to 2.1 million individuals who are not part of the labor force.

Just as companies have adapted to remote work, a new development in workplace flexibility may be on the horizon: the four-day work week. In fact, two recent studies have shown that this work arrangement could offer significant benefits for both employers and employees.

The Federal Reserve Bank of Atlanta reports that wages for workers who remained at their employment increased 5.5% in November compared to a year earlier. 

ASE released its 2022 Healthcare Insurance Benefits Survey.  The annual survey, covering Michigan employers, examines the premiums, deductibles, and co-pays of employer-sponsored health plans as well as wellness benefits and cost control strategies.

 

Wages among Detroit area tech startups fall short of other cities according to a report from Carta.  In fact, the California-based technology software company revealed that Detroit area tech workers earn just 77% of what they would make in the metro areas of San Francisco, New York City, Seattle, and San Jose, California.  These cities were identified as the areas with the highest pay packages.

Researchers from Microsoft studying workplace trends have revealed an interesting trend.  A trend that will hit close to home for anyone accustomed to logging in after hours.  An analysis of keystrokes from a sample of Microsoft employees showed that there was a third peak of work activity starting around 9:00 o’clock in the evening. Their research suggests that the traditional 9-to-5 workday is fading, and more workers may be redesigning their day to meet the demands of work...

Employers of all types are facing unprecedented employee retention challenges.  With the recently released Employee Turnover Survey, we now have some concrete data to show just how significant these challenges were in 2021.

The inevitable reaction to worker shortages and an increase in labor demands has been higher wages.  As the theory goes, employers meet the challenge of these two forces by increasing wages to reach a new equilibrium.  However, the pandemic has resulted in a sort of Alice’s Adventures in Wonderland scenario where nothing is at it should be.  In fact, according to research outlined by the Federal Reserve Bank of Atlanta, wage growth alone is unlikely to return labor force...

We are still waiting for the moment where we feel confident to say the worst of COVID is behind us and it’s downgraded to an endemic.  When that happens, we will take stock of the pandemic’s legacy on the workplace.  A recent working paper from the National Bureau of Economic Research makes the case that remote work will be one of those artifacts from the pandemic.

Last week, the Bureau of Labor Statistics (BLS) released its monthly Job Openings and Labor Turnover Summary.  This most recent report sheds some light on the great resignation and reveals what many have assumed.  Employee quit rates are at an all time high.  Specifically, the federal agency reported that 4.4 million people left their jobs in September, and the annual quit rate stands at 3% for the month, a series high.