To retain top employees and attract new ones, U.S. companies are increasingly turning to perks such as subsidized training and flexible work conditions rather than raises. These incentives are finding a welcome among employees, too, especially educational benefits.
Despite all the worry over the impact of rising oil prices, recall that the U.S. is now a largely services-based economy, and observe that the rising wages that have led to real overall cost rises in decades past are nowhere to be found today. Exhibit A is in Wisconsin.
Raises for U.S. workers may barely keep pace with inflation in 2010: The average company will budget just 2.8% of its salary pool for wage increases - the first time in more than two decades that number has fallen below 3%.