Inflation pinches white-collar pay

Inflation is pinching company compensation plans for white-collar and management groups. Employees feel they are falling behind the rising cost of living, and companies admit they can't afford to match raises to the pace of inflation, Industry Week reports.

Many companies the magazine contacted plan to give salary increases averaging roughly 7 percent. That would be far short of the 18 percent inflation rate currently indicated by the consumer price index. "We didn't match the 13 percent rise in the CPI in 1979, and we won't match this year, either," one executive said.

Executives granting raises must deal with both their own company's budget limits and the voluntary federal guidelines restricting raises to a 7.5 -percent-to-9.5-percent range.

About these ads
Sponsored Content by LockerDome

We want to hear, did we miss an angle we should have covered? Should we come back to this topic? Or just give us a rating for this story. We want to hear from you.

Loading...

Loading...

Loading...

Save for later

Save
Cancel

Saved ( of items)

This item has been saved to read later from any device.
Access saved items through your user name at the top of the page.

View Saved Items

OK

Failed to save

You reached the limit of 20 saved items.
Please visit following link to manage you saved items.

View Saved Items

OK

Failed to save

You have already saved this item.

View Saved Items

OK