Shift to Benefits From Pay Helps Explain Sluggish Wage Growth

via Wall Street Journal

U.S. employers, slow to reward workers with higher pay, have been quicker in recent years to offer signing bonuses, more paid time off and other perks.

The move toward benefits over pay provides a few clues that help explain a chief mystery of the current expansion: the unusually sluggish growth in wages.

Some of the move toward benefits reflects a workforce that puts a high value on flexibility, health insurance, time off and other things besides wages.

But the shift also highlights the fragility of an expansion in which employers remain hesitant to commit to higher wages and are turning instead to more revocable perks. That could have broader repercussions if consumers aren’t able to tap bigger paychecks and boost their spending..

Read the full article here

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About thebenefitblog

Eric is a Producer at Lockton Insurance Brokers, Inc., the world’s largest privately held commercial broker. Eric has over 23 years of experience in the insurance industry and has spent the last 11 years with Lockton. Eric specializes in Health & Welfare Benefits, Retirement Planning, and Executive Benefits. Eric's clients utilize his expertise in the areas of Plan Due Diligence, Transaction Structure, Fiduciary Oversight, Investment Design, Compliance and Vendor negotiation to improve the operational & financial outcome for each client. The Benefit Blog is a place to share that expertise and industry news.
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