Survey: Salaries in Michigan on Rise Due to Employee Turnover, Low Unemployment

ASE in Troy, one of the nation’s largest employer associations, has released the results of its 2022 Michigan Compensation Survey, which shows that overall wage growth based on a constant sample of companies was up 4 percent, well behind the 40-year high inflation rate of 8.6 percent.
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Workers wages are on the rise compared to last year due to low unemployment, high turnover, and more according to the latest ASE 2022 Michigan Compensation Survey. // Stock Photo
Workers wages are on the rise compared to last year due to low unemployment, high turnover, and more according to the latest ASE 2022 Michigan Compensation Survey. // Stock Photo

ASE in Troy, one of the nation’s largest employer associations, has released the results of its 2022 Michigan Compensation Survey, which shows that overall wage growth based on a constant sample of companies was up 4 percent, well behind the 40-year high inflation rate of 8.6 percent.

Data from the survey shows that overall wage growth was still up compared to 2.1 percent in 2021. ASE says low unemployment and unprecedented employee turnover appear to have accelerated the wages and salaries of local employers.

“Our data, collected directly from local employers, suggests that employers responded to their recruitment and retention challenges by increasing wages this past year,” says Mary Corrado, president and CEO of the ASE. “The data shows that at least a third of all employers increased salaries for all or some portion of their workforce in direct responses to labor conditions.”

Some job families experienced growth higher than the overall 4 percent average increase. Specifically, this year’s data shows that many of the low skill and low wage jobs witnessed increases above the overall constant sample, including material handling at 6.7 percent and assembly/production at 4.6 percent.

Additional highlights from the 2022 ASE Michigan Compensation Survey include:

  • Actual wage increases from 2021 to 2022, based on a constant sample of companies, for the metro Detroit area increased 3.7 percent year over year. The constant sample represents companies who reported data in both 2021 and 2022.
  • Slightly more than four in ten companies increased their starting salaries for all or some of employee groups.
  • Total salary increases, as a percent of overall payroll, averaged 3.8 percent for 2021. Projections for 2022 increases are approximately 3.5 percent.

“It is likely that the conditions many employers face now, namely a lack of available talent, will persist,” says Corrado. “Our data suggests that it will be necessary for employers to evaluate their compensation to compete effectively.”

A total of 314 companies participated in the survey, 71 percent of the participants are in the metro Detroit region. The survey was distributed to human resource professionals in January 2022. Nearly 40 percent of the respondents are classified as automotive suppliers, and 471 jobs were reported on. Slightly more than 70 percent of the organizations that responded have between 1 and 500 employees.

ASE member participants can access the data at no cost. To request to purchase a copy of the 2022 Michigan Compensation Survey results, click here.

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