Companies give out mid-year raises amidst inflation

This summer large corporations are going above and beyond to retain their employees and to help them cope with inflation. The average pay raise in the country is around 3% a year and is given out during the January-April quarter. But this year, inflation, high gas prices and a tight labor market are creating conditions that brought larger-than-usual bumps in pay for workers.

According to a survey from the consulting firm Gallagher, roughly two-thirds of employers increased their compensation budgets from January to June. Scott Hamilton from HR at Gallagher says, "Inflation and the impact it has on the cost of going to work, feeding a family, keeping the lights on, is driving the conversation about pay raises." He says that companies are having conversations about pay increases, gasoline gift cards and reimbursement for travel expenses to make sure their workers show up."

ExxonMobil, Microsoft, Walmart and T. Rowe Price are among the large corporations that recently increased workers' compensation and introduced new benefits. ExxonMobil expanded a program that gives stock to high-performing employees, doubling the number of workers who receive shares. Exxon also gave its U.S. workers a one-time cash payment equal to 3% of their salaries. Meanwhile, at Microsoft, the global budget for merit-based salary raises was doubled. T. Rowe Price also sweetened deals for workers, offering most of its global staff 4% salary increases by July 1 "to reward their commitment and ensure that we remain an employer of choice." Walmart also announced higher wages for more than 36,000 pharmacy technicians by raising their average hourly wages to more than $20 an hour. 

Source: CBS News