Q. "When hiring, what is the minimum salary we should offer in this economy?"
Answer:
The answer will change according to your geographical location and the position you are hiring for, but according to the Federal Reserve Bank of New York's November 2022 SCE Labor Market Survey, the reservation wage is now $74,000, its highest level ever.
(This survey asks employed, unemployed and those out of the labor force, "Suppose someone offered you a job today in a line of work that you would consider. What is the lowest wage or salary you would accept (before taxes and other deductions) for this job?" The average answer was $73,667.)
Why the sharp increase?
According to Remote.co, 80% of current salaries are not keeping up with inflation
The current competitive job market is allowing 47% of those individuals to look for higher-paying jobs as a result
What does this mean for your organization?
Make sure you're offering competitive salaries that provide a solid living wage for your area
Offer excellent benefits that add value
Create a organizational culture people want to be a part of