As employees re-evaluate what they want out of work during this time of the Great Reassessment, one major area they’re looking at is salary. In June 2022, the U.S. Chamber of Commerce reported there are significant labor shortages in industries including financial activities and professional and business services. Employees are in an advantageous position to demand higher salaries if companies want to secure top talent.
Other factors, like inflation, have also contributed to higher salary demands. Let’s look at the state of salary expectations for some of the industries AccruePartners specializes in. Whether you’re an employer or a candidate, these figures can help you make informed decisions in the hiring and application process.
Overall Salary Trends in 2022
One trend that impacts all salaries is the increase in minimum wage pay. The U.S. Department of Labor reports around half of U.S. states has a minimum wage that’s higher than the federal minimum wage. An SSRN study updated in 2022 found when hourly wages increase for companies, other employers in the same areas tend to increase wages, as well.
That tells us employers in one geographic area pay attention to local and state wage trends, as well as how competitors are paying employees. If your competitors are increasing wages, they may be better positioned to attract new talent and potentially poach yours.
An increase in starting wages can also cause a ripple effect of salary increases throughout a company. When employees see some roles are receiving pay increases, that may increase the demand for higher wages at all positions.
In November 2021, Kiplinger reported employer surveys found companies planned to increase wages an average of 3.3% in 2022, which is higher compared to 2021 increases. A December 2021 survey of 339 companies by Pearl Meyer found that 99% of companies planned to offer salary increases in 2022.
Salary.com’s Annual U.S. National Salary Budget Survey shows that 41% of organizations planned to have a higher salary increase budget in 2022 than they did the previous year. That’s the first significant change in salary increases since survey data has been collected for the past 10 years. In 2020, only 10% of organizations planned a higher salary budget increase year-over-year.
In 2022, most companies are increasing wages, with many doing so at higher levels than in previous years. Salaries are influenced by a variety of factors, including geographic location and experience. But it’s safe to say this year, that job seekers can afford to demand a salary increase when they’re considering positions. Here’s how wages are broken down by industry.
Accounting & Finance
Financial occupations are in high demand, with the U.S. Bureau of Labor Statistics (BLS) projecting an 8% growth rate between 2020 to 2030. The median annual wage for financial occupations was $76,560 in May 2021. We’re already seeing massive gains in earning potential, taking a cue from some of the most notable financial institutions in the U.S.
For example, Banking Dive reports first-year investment banking and global capital markets analysts at Morgan Stanley recently saw their salaries increase from $85,000 a year to $100,000. Morgan Stanley also increased pay for second-year professionals from $90,000 to $105,000. JPMorgan Chase, Citi, Barclays, Deutsche Bank, Bank of America, and Wells Fargo have also recently implemented significant salary increases to keep up.
For non-banking financial services, salaries are also rising. According to the BDO 2022 Salary Increase Budget Survey Report, the 2022 salary increase budgets in non-banking financial services averaged 5.04%.
According to Kiplinger, salary increases in 2022 are the largest for high-tech companies, increasing an average of 3.1%. Computer and technology occupations are growing faster than the average for all occupations, with the BLS projecting a 13% increase in positions from 2020 to 2030.
In May 2021, the median annual wage for computer and IT jobs was $97,430. The 2022 Dice Tech Salary Report found the average tech salary in 2022 increased to more than $104,000, which is the highest average salary ever recorded by the report.
Salary increases took place in all of the top 23 tech hubs, with notable average year-over-year increases in Seattle, WA (11.2%), Atlanta, GA (13.9%), and Chicago, IL (12.6%).
Marketing, Digital & Creative
Salaries for marketers and creatives are increasing significantly in 2022, with MarketingProfs reporting an expected salary increase of 5.6% for these positions. Some notable national midpoint starting salaries for digital marketing roles include:
- Digital strategist: $89,250
- Digital project manager:$87,250
- Digital marketing manager:$86,000
Earning potential increases for in-demand jobs. For example, the BLS reports the 2021 median pay for advertising promotions and marketing managers was $133,380. The job outlook for these positions is projected to grow 10% between 2020 and 2030.
Salaries Are Increasing Across the Board
It’s safe to say in all positions, in all industries, salaries have increased year-over-year in 2022. Considering factors like inflation and the number of unfilled jobs, to stay competitive, employers are expanding their salary increase budgets and are offering top talent higher salaries to attract and retain them.
From human resources to corporate support, companies are closely evaluating how their offerings are impacting their talent pool. For businesses to stay competitive, it’s important to look at what competitors are offering and how salary increases could help companies grow.