ASE Announces Results of 2023 Compensation Survey – Wages Grow Substantially in Michigan
Troy, MI - June 7, 2023 - ASE, Michigan’s largest employer association supporting its members with Everything HR, has released the findings of its 2023 ASE Compensation Survey. The full results were presented at the Michigan Pay & Economic Briefing that took place June 6th in Troy.
The survey highlights that the convergence of historically low unemployment, noticeable inflationary trends, and sluggish labor participation has resulted in substantial wage growth over the past 12 months. Findings reveal an overall wage growth of 4.4% for a matched sample of companies (referred to as a constant sample), surpassing last year's growth of 4.0%.
Mary E. Corrado, President and CEO of ASE, expressed her enthusiasm about the survey release, stating, "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." Corrado further explained, "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
reveals that certain job families experienced growth rates higher than the overall
survey average. Particularly, low skill and low wage jobs, including Material
Handling (5.3%) and Assembly/Production (5%), 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% from 2022 to 2023.
- - In response to the prevailing economic conditions, approximately 40% of participants have implemented salary increases exceeding the usual levels for their hourly and professional staff.
- - Nearly 40% of organizations have adjusted their salary budgets to account for inflation, resulting in average salary budgets of almost 4% 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.
Corrado emphasized, "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.”
2023
Survey Demographics:
A total of
324 companies participated in the survey, with 65% of the participants located
in the Metro Detroit region. The survey, distributed to human resource
professionals in January 2023, covers 489 job positions. Slightly over 70% of
the organizations that responded reported having 1-500 employees.
To request
to purchase the 2023 ASE Compensation Survey results, please click here. ASE member participants can
access the data at no cost via their Member Dashboard.
About ASE
ASE is Michigan’s trusted HR partner for Everything HR. ASE is a non-profit, membership organization – everything we do is based on the needs of members and to drive the success of their organizations. ASE strengthens organization's HR departments by offering member benefits and discounted services that span the entire employee lifecycle including recruitment, development, and retention while minimizing compliance risk. We provide our members guidance through new legislation and workplace issues such as those that occurred with the COVID-19 pandemic. Learn more about ASE at www.aseonline.org.
