The American Society of Employers in Troy (ASE), Michigan’s largest employer association, has released the findings of its 2023 ASE Compensation Survey, which shows substantial wage growth over the past 12 months.
The survey showed the convergence of historically low unemployment, noticeable inflationary trends, and sluggish labor participation resulted in wage growth. Findings also reveal an overall wage growth of 4.4 percent for a matched sample of companies (referred to as a constant sample), surpassing last year’s growth of 4 percent.
“We are encouraged by this year’s strong participation in the survey as it continues to demonstrate the importance of this data to our members and the Michigan business community,” says Mary E. Corrado, president and CEO of ASE. “These are challenging times for employers given the lack of available talent. This, combined with higher-than-normal inflation, has resulted in significant wage growth.”
The survey also showed that certain job groups experienced growth rates higher than the overall survey average. Particularly, low-skill and low-wage jobs, including material handling (5.3 percent) and assembly/production (5 percent), witnessed notable increases.
Key Highlights from the 2023 ASE Compensation Survey:
- Wage increases among Michigan businesses, based on the constant sample of companies, showed a year-over-year rise of 4.4 percent from 2022 to 2023.
- In response to the prevailing economic conditions, approximately 40 percent of participants have implemented salary increases exceeding the usual levels for their hourly and professional staff.
- Nearly 40 percent of organizations have adjusted their salary budgets to account for inflation, resulting in average salary budgets of almost 4 percent in 2023 as a percentage of total payroll. Salary budgets refer to those funds allocated and used to determine salary increases for their employees.
Employers of all sizes are advised to proactively evaluate their wages and salaries as they continue to grapple with the lingering effects of the pandemic, particularly the scarcity of available workers.
“This year’s findings should serve as a clear catalyst for businesses to thoroughly evaluate their compensation practices and underscore the critical importance of implementing a robust total rewards program,” says Corrado.
A total of 324 companies participated in the survey, with 65 percent of the participants located in the metro Detroit region. The survey, distributed to human resource professionals in January, covers 489 job positions. Slightly more than 70 percent of the organizations that responded reported having 1-500 employees.
To request to purchase the 2023 ASE Compensation Survey results, click here. ASE member participants can access the data at no cost via their Member Dashboard.