ASE has released the results of its 2022 Michigan Compensation Survey, which reveals that low unemployment, sluggish labor participation, and unprecedented employee turnover have accelerated the wages and salaries of local employers. Data from the most recent ASE compensation survey shows that overall wage growth, based on a matched sample of companies (referred to as a constant sample) was 4.0% compared to just 2.1% in 2021.
Hiring and recruiting have become increasingly difficult as employees leave for more pay, flexible work arrangements, or new challenges. Data, collected directly from local employers, suggests that employers responded to their recruitment and retention challenges by increasing wages this past year. Furthermore, at least a third of all employers increased salaries for all or some portion of their workforce in direct response to labor conditions.
Some job families experienced growth higher than the overall 4% average increase. Specifically, this year’s data shows that many of the low skill and low wage jobs witnessed increases above the overall constant sample, including Material Handling (6.7%) and Assembly/Production (4.6%).
Additional highlights from the survey include:
- Actual wage increases from 2021 to 2022, based on a constant sample of companies, for the metro Detroit area increased 3.7% year over year. The constant sample represents companies who reported data in both 2021 and 2022.
- Slightly more than four of ten companies increased their starting salaries for all or some of employee groups.
- Total salary increases, as a percent of overall payroll, averaged 3.8% for 2021. Projections for 2022 increases are approximately 3.5%.
Employers of all sizes should take steps now to evaluate their wages and salaries. They are still contending with the lingering effects of the pandemic, specifically a lack of available workers.
About the survey. A total of 314 companies participated in the survey. 71% of the participants are in the metro Detroit region. The survey was distributed to human resource professionals in January 2022. Nearly 40% of the respondents are classified as automotive suppliers, and 471 jobs were reported on. Slightly more than 70% of the organizations that responded have 1-500 employees.
2022 Michigan Compensation Survey Access - ASE members who participated in the survey can access the full survey report via the Compensation On-Demand Analytics Resource where the PDF file can be downloaded. Participants will also be able to create their own custom reports or queries with the dynamic CODA tool and can request a customized Market Ratio Report at no cost. Member non-participants can purchase for $450, and non-members can purchase for $2,350. To learn more about the survey, to view sample data, request complimentary customized Market Ratio Report, or to purchase the survey, please visit our website.