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Part II: Business Acumen and Inflation – how is your company responding?

Posted on May. 5, 2022  /  President's Messsage  /  Subscribe 0

In the March SHRM Hawaii newsletter, I shared with you how the Brent Crude Oil and Russian-Ukraine situation have affected the rising costs of goods and services which in turn, directly impacts Hawaii businesses.

SHRM recently reported on May 3rd:

• Jobs across the US rose to 11.5 million in March with job openings outnumbering unemployed workers by about 5.5 million
• Employees voluntarily resigning their jobs in March broke a new record of 4.5 million
• Largely due to the COVID pandemic, almost 48 million workers quit their jobs in 2021
  
  

On May 4th, the Federal Reserve raised the interest rate by .5% as a response to inflation. This is the first time in 22 years that the central bank has raised the rate by .5%. Why is this newest piece of data important to HR Professionals?

• The cost of doing business, in general, will continue to rise
• Employees will feel an even greater burden to pay for necessities like housing and groceries (morale, work/life balance, and mental health issues may be impacted)
• Signing bonuses are becoming the norm rather than only offered in select positions - in the food and beverage industry, it is common now to see signing bonuses ranging from $500.00 to $2,000.00
• For many of us, talent acquisition and retention of employees will remain a top priority for the near future and that may mean, continued emphasis on innovation and creativity in the design and implementation of HR strategies
  
  

As we consider business acumen thinking, some thoughts for consideration:

• Could we consider developing an internal focus group to address this?
• Is it time to re-assess your organization’s overall labor and benefit costs?
• Indications of the impending increase in the minimum wage at $12.00 per hour starting October 1st – what plans are beinghave been developed?
• What does your company anticipate for the budget year 2023?
  
  

SHRM Hawaii is dedicated to the advancement of HR Professionals like you!  Our continued effort to provide relevant insights that can have a positive influence on maintaining and building your career.  As always, welcome your thoughts and feedback, please stay safe and healthy.

Naomi
2022 SHRM Hawaii President

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