Do You Have a Job in Iowa? You Can Expect a Nice Raise in 2022
How has 2021 treated you financially? I'll tell you one thing you haven't heard this year, "I can't find a job!" In fact, chances are instead you've heard or uttered the words, "labor shortage". The labor shortage is the very reason why many restaurants are closing earlier, or skipping out on being open on certain days.
It's the reason why there are so many "help wanted" signs on doors, and ads for employment on the radio, TV, and internet. It is the reason why you if you're unemployed right now, are of interest to many, many eastern Iowa businesses. It's also a reason why if you're currently employed, you can expect to have fatter pockets in 2022.
Base pay could actually increase by an average of 3.9%
If you're working for a company in Iowa that is big or small, expect a raise at some point next year. KCCI reports it could be right around 4%. If that becomes the case, it will be the largest one-year hike since 2008. The reason why is quite simple and explained a bit above: labor shortage. For this study shared in the KCCI report, the businesses surveyed all employed more than 10,000 employees. So think businesses like Walmart, McDonald's, and Home Depot. Chain stores, in other words.
This would also include more specialized workers like tech sector employees. Think IBM, Apple, and General Electric. While businesses are not usually eager to throw around money, right now there's the need for companies to offer higher wages in order to attract workers during this labor shortage.
When you pay a new employee more, you have to satisfy existing employees, too. Hence, current employees can expect a raise to close the gap with new hires. If you don't, you risk losing highly skilled employees who may attempt to pursue work elsewhere for more money. Think about it simply: you work for Walmart and have for 8 years, they start someone off around your salary, you could leave. Maybe Target, for example, would give you about the same or more than what you're making now. That is why you can expect a raise in 2022.
You don't have to just accept a raise if you don't feel it's enough
Don't like a proposed raise? If you are offered something this next year you feel is too low, take a look around for a new job. Then, go back to your current company with a competing offer. It doesn't hurt to try and, it feels kind of nice to be in demand, too.
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