As inflation continues to drive up the cost of living, businesses and local governments are issuing “inflation pay” to workers.
Hysen Lushaj, the owner of Fort Worth’s Nizza Pizza, sought to assist employees by giving raises to offset the receding economy. He explained, “They need a raise because everything has gone through the roof. Rent’s up; food costs are up; gas is up.”
Small business owners often work closely with their employees, seeing them more regularly. Lushaj explained, “We’re a mom-and-pop operation, and we’re hands-on. So, when you work with them, you see their struggles, and you take it a little more personal versus a big corporation.”
A study conducted by the consulting firm Mercer earlier this year found that 42% of companies had employees request raises to help counter the adverse effects of inflation. Larger companies such as ExxonMobil, Microsoft, T. Rowe Price, and Walmart have responded to these pressures by increasing pay for many workers.
In contrast, small businesses across the nation might not be able to offer the same kind of help. A recent Goldman Sachs survey indicated that 93% of small business owners had serious fears that a recession was oncoming, as The Dallas Express recently reported.
Nevertheless, private companies are not the only entities giving workers more pay. Local DFW governmental entities have allocated millions to employee bonuses.
The Tarrant County commissioners voted last month to issue nearly $30 million in taxpayer money to employees — most of it coming from the American Rescue Plan Act. Each full-time worker will receive $4,900, while part-time employees will receive $1,000.
County Judge Glen Whitley said, “It’s something that we’re glad that we’re able to do,” explaining that they hope the additional pay will increase employee retention rates. The commissioners did not extend the bonus payout to elected officials.
Similarly, the Dallas County Commissioners Court also decided to increase salaries to offset inflation in a 3-2 vote. However, unlike the Tarrant County proposal, the wage increase was also given to elected officials and not just staff. All county staff and officials were given a 3.3% increase, and employees making less than $60,000 a year also got a 1.6% bonus.
County Judge Clay Jenkins explained, “We need to be able to keep our employees up with the cost of things with inflation. If we don’t do that, our employees are actually making less money each year.”
Commissioner Elba Garcia objected to elected officials receiving raises.
She explained, “I want an adjustment for all the employees … I just can’t support the 2% raise for elected officials.”
