Quick Hits - July 26, 2023 - American Society of Employers - ASE Staff

Quick Hits - July 26, 2023

WTW salary budget survey shows 4% for 2024: Salary budgets for U.S. employees are expected to remain high in 2024 as employers become accustomed to ongoing labor market challenges. According to the latest Salary Budget Planning Survey by WTW, organizations are budgeting an average increase of 4.0% in 2024. Though down from the actual increase of 4.4% in 2023, the numbers remain higher than the 3.1% salary increase budget in 2021 and years prior.  The survey found that more than two-thirds (70%) of U.S. employers budgeted for pay raises to be either the same or higher in 2023 than 2022. Less than one-quarter (14%) of companies have budgeted for pay raises to be lower than last year. Concerns over a tighter labor market impacted by worker shortages is the most commonly cited driver influencing changes in 2023, cited by nearly two-thirds (61%) of respondents expecting changes in their salary budgets, followed closely by inflationary pressures (60%). Other factors prompting changes to salary budgets include concerns regarding employee expectations (24%), anticipated recession or weaker financial results (23%) and cost management (20%).  Source: World at Work 7/7/23

Want to work a 4-day workweek? Looks like it’s coming: As demand for a four-day work week intensifies, a new report has found that four in 10 companies plan to implement the scheme in the future.  A survey by Resume Builder among 600 participants in the U.S. revealed that 50% of those planning to implement the work arrangement will do it this year. Another 42% said the policy will be effective in 2024, while 8% said it won't be available until 2025 or later. According to 98% of the respondents, their organizations will run a trial period before implementing the policy, which will likely last between one and three months (50%). Another 11% said the trial will only be less than a month, while 39% said it will be longer than three months. "The trial will include all eligible employees according to two-thirds of business leaders, whereas a third say only a smaller group will participate," Resume Builder said. The employers surveyed believe that implementing a four-day work week will give them the following benefits:  competing for top talent (92%), positively affecting company profitability, (85%), and reducing employee turnover (76%).  Source:  Human Resource Director 7/7/23

Why financial counseling benefits are important:  37% of workers are turning to their retirement accounts to help cover costs during financial emergencies, debt, household expenses, and medical bills, among other bills, according to survey results by Transamerica Center for Retirement Studies, a not-for-profit focused on retirement education and a division of Transamerica Institute.   Generation Z was the most likely generational cohort (28%) to dip into their 401(k) or IRA, followed by millennials (24%), Generation X (19%) and baby boomers (12%).  The confidence workers and retirees have that they’ll have enough money saved for retirement declined the most it has since 2008 during the Great Recession, an April report by the not-for-profit Employee Benefit Research Institute and research firm Greenwald Research found. Amid concerns about having little or no savings, inflation, and debt, 64% of workers said they would be able to live comfortably in retirement, a drop from 73% a year before. On the retiree side, 73% felt confident, down from 77% in 2022, the survey found.  Source:  HR Dive 7/7/23

Another benefit to consider – commuter costs: The average American spends an average of 27.6 minutes traveling one way, according to workplace insights platform Zippia, totaling at least an hour of extra work time. But nearly a quarter of Americans spend more than 30 minutes on a one-way commute, which adds up to lost time and money. Traveling 55 minutes per day equates to over 333 hours per year — nearly two weeks of an employee’s life lost to commuting, according to Zippia. While time is money, commuting comes with a high price tag, too: real estate company Clever Real Estate estimates employees spend approximately $8,466 on their commute every year, around 19% of their annual income. Commuters also spend an average of $867 on fuel per year and an additional $410 on vehicle maintenance, as well as added costs like parking pass fees, tolls, and parking tickets. While employers can subsidize certain commuting expenses, such as offering to pay for subway passes and train tickets for those in metropolitan areas, there's nothing they can do about the loss in productivity that stems from long commute times.  Although not tax free, employers should consider subsidies for commuting of some sort, flex time, and flexibility in workspace.  Source:  EBN 7/7/23

Federal contractors – make sure you’re using the updated disability self-ID form: The Office of Federal Contract Compliance Programs has revised the Voluntary Self-Identification of Disability Form (CC-305) to update the preferred language for disabilities and to include additional examples of disabilities. The revised form, including various translated versions, is available on the OFCCP website. Federal contractors and subcontractors had until July 25, 2023, to implement the new form into their applicant and employee systems and processes. For more guidance on implementing the form, please read OFCCP’s Frequently Asked Questions on the topic.  Source:  OFCCP

Would you hire someone whose resume has grammatical errors? In a highly competitive job market, simple grammatical errors can put a dent on one's job application. Resumes with multiple grammatical mistakes are about 20% less likely to have an interview than those without any errors, according to a study published by the Public Library of Science. The same study found that recruiters often attributed these mistakes to an applicant's perceived lack of interpersonal skills and conscientiousness. With people often prioritizing speed over accuracy, grammatical errors may slip through the cracks, potentially costing them a job. "These frequent misspellings are not necessarily due to specific language rules, but rather a combination of factors such as unfamiliarity with spelling patterns, typos, and lack of attention to detail," said Sylvia Johnson, a language expert at Preply . With careful attention, however, resume mishaps are easily preventable. To help applicants keep an eye out, Preply analyzed LinkedIn pages across 25 industries to investigate the top misspellings people made. Here are the 10 most common spelling mistakes found:  Management, Programming, I’m, Realtor, Skill Set, Board Member, Company-wide, Food Service, Team Building, and Video Games.  If you found a resume with a typo or spelling mistake, what would you do?   Source:  EBN 7/12/23

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