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  • Writer's pictureJoel White

Merits, Promos, Inflation

Originally posted 2-Jun-2021 on LinkedIn:

1. Biopharma R&D outsourcing continues to grow 6%+.

2. Most service companies in the sector are targeting far more than 6% revenue growth.

3. Compensation indices continue to point to ~4% wage increase expectations this year and beyond. Broader inflation trends, especially in the US, may pressure these expectations higher.

4. EVERYONE is hiring.


Most employees know most of these facts. Each fact is a few clicks away.


So if your employees' comp went nowhere last year, and you only budgeted 2-3% for merit/promo in this environment, what messages are you sending to existing employees?

Here's a few:

- we value your contributions, just not as much as we value filling these new positions

- working towards that promotion won't have much of a payoff

- this industry will always have turnover; we can handle it if you leave

Compare these messages to your corporate values. Are they aligned?

And re: inflation-

Whether you think inflation is longer term or "transitory", it's here NOW and employees expect better than 2-3% this year.

Or they'll leave.

"People don't leave for money" doesn't work during inflationary times.


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