Troy, MI --- June 15, 2022 --- ASE, one of the nation’s oldest and largest employer associations providing people-management information and services to Michigan employers, released the results of the organization’s 2022 Michigan Compensation Survey. It is the 70th year that ASE has published annual wage and salary data.
Low unemployment, sluggish labor participation, and unprecedented employee turnover appear to have accelerated the wages and salaries of local employers. Data from the most recent ASE compensation survey shows that overall wage growth, based on a matched sample of companies (referred to as a constant sample) was 4.0% compared to just 2.1% in 2021.
Mary E. Corrado, ASE President and CEO, announced the survey release. “Our data, collected directly from local employers, suggests that employers responded to their recruitment and retention challenges by increasing wages this past year,” stated Corrado. “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,” added Corrado.
Some job families experienced growth higher than the overall 4% 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 (6.7%) and Assembly/Production (4.6%).
Additional Highlights from the 2022 ASE Michigan Compensation Survey:
* Actual wage increases from 2021 to 2022, based on a constant sample of companies, for the metro Detroit area increased 3.7% year over year. The constant sample represents companies who reported data in both 2021 and 2022.
* Slightly more than four of 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% for 2021. Projections for 2022 increases are approximately 3.5%.
Employers of all sizes should take steps now to evaluate their wages and salaries. They are still contending with the lingering effects of the pandemic, specifically a lack of available workers.
“It is likely that the conditions many employers face now, namely a lack of available talent, will persist. Our data suggest that it will be necessary for employers to evaluate their compensation to compete effectively,” added Corrado.
2022 Survey Demographics
A total of 314 companies participated in the survey. 71% of the participants are in the metro Detroit region. The survey was distributed to human resource professionals in January 2022. Nearly 40% of the respondents are classified as automotive suppliers, and 471 jobs were reported on. Slightly more than 70% of the organizations that responded have 1-500 employees.
To request to purchase a copy of the 2022 Michigan Compensation Survey results, click here. ASE member participants can access the data at no cost.
About ASE
ASE is Michigan’s trusted HR partner. 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 and help them THRIVE. 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 currently occurring with the COVID-19 pandemic. Learn more about ASE at www.aseonline.org.
