Inflation recently hit a 31-year high, meaning the cost of living has increased for many workers despite their salaries not increasing proportionately. In fact, the typical raise in 2021 sat at 3 percent, while the increase in inflation was 6.2 percent. Lower-wage workers and front-line staff are in the greatest need of the wage boost and are suffering from burnout and stress.
New data also shows a majority of U.S companies are reporting increases in profit margins, suggesting that they have the ability to boost salaries. Employers like Amazon and Walmart have already begun offering higher starting salaries and increased hourly wages.
Fortune writer Rob Walker argues that while this may mean shareholder payoffs and CEO salaries will take a hit, it may be worth it in the long run, especially if it could alleviate the burden of poverty and financial stress for many workers and reduce turnover.
