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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.


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


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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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