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Employers were conservative with wage increases due to the economic effects of the pandemic.
Troy, Mich. ---June 14, 2021--- ASE, one of the nation’s oldest and largest employer associations providing people-management information and services to Michigan employers, released the results of the organization’s 2021 Michigan Compensation Survey. It is the 69th year that ASE has published annual wage and salary data.
The impact of the pandemic, and its resulting recession, created many challenges for employers. While compliance and safety may have taken center stage, employee rewards and wages were also affected by COVID-19. Data from the most recent ASE compensation survey shows that overall wage growth in Michigan, based on a matched sample of companies (referred to as a constant sample) was just 2.1%.
“Our data, collected directly from local employers, shows that overall employers were conservative with their wage increases this past year,” stated Mary E. Corrado, ASE President & CEO. “This was expected given the recent recession and the economic hardships brought on by the pandemic.”
However, the data revealed that some job families increased at rates higher than the overall survey average. This year’s data shows that the Production / Manufacturing job family experienced a 2.8% increase year over year. Light Assembly climbed to $15.14 per hour, a more than 6% increase from the previous year.
Additional Highlights from ASE’s 2021 Michigan Compensation Survey:
- The Detroit area saw slightly higher wage increases. Based on a constant sample of companies, the metro Detroit area increased 2.3% year over year (compared to an average of 2.1% statewide). The constant sample represents companies who reported data in both 2020 and 2021.
- Merit increase budgets, what a company budgets for performance-based pay increases, averaged 2.8% for 2021. This is slightly above levels seen in 2020, and more consistent with 2019 merit budgets.
“Employers of all sizes should take steps now to evaluate their wages and salaries,” stated Corrado. “As employers emerge from the pandemic, they are still contending with its lingering effects – specifically, a lack of available workers.”
2021 Survey Demographics
A total of 301 companies, 57% of them located in the metro Detroit region, responded to the survey, which was distributed to human resource professionals in January 2021. Nearly 40% of the respondents are classified as automotive suppliers, and 461 jobs were reported on. 82% of the organizations that responded have 1-500 employees.
ASE members who participated in the survey can access the full results in their ASE Member Dashboard. Non-participants can request to purchase a copy of the 2021 Michigan Compensation Survey results here.
ASE is Michigan’s trusted HR partner. ASE is a non-profit, membership organization – everything we do is based on the needs of members and to drive the success of their organizations. ASE strengthens organization's HR departments by offering member benefits and discounted services that span the entire employee lifecycle including recruitment, development, and retention while minimizing compliance risk. We provide our members guidance through new legislation and workplace issues such as those currently occurring with the COVID-19 pandemic.