Why Wages Aren’t Rising
Federal data shows that the average worker in 2000 received 27% of the compensation in benefits which include bonuses, paid leave, and contributions to health insurance and retirement accounts. As of the 2nd quarter this year, employees now receive 32% of their compensation in benefits. And this data does not include nonmonetary benefits like flexible hours, ability to work from home, or perks like gyms and “summer Fridays”.
The Fed’s Beige Book of Economic Conditions in October said that companies who are hiring, “were increasingly using benefits—such as vacation time, flexible schedules, and bonuses—to attract and retain workers, as well as putting more resources into training.” This is exactly what Millennials have said they want for many years as they seek a better quality of life that is more balanced between work and home than Xers or Boomers desired. So, they are getting what they want.
Whereas, Xers and Boomers were defined by this famous line in the movie Jerry Macguire, “Show me the money!”