Not this year. Expectations were inflation was transitory. You don't budget your wage increases (which would've happened in Q4 last year) based on transitory economic conditions.
This round I expect the usual 3% base plus a small discretionary bonus pool and have been setting that expectation with my staff accordingly. Depending on how this year pans out I expect the 2023 raise pool will factor in persistent inflation.
> You don't budget your wage increases (which would've happened in Q4 last year) based on transitory economic conditions.
Wage increases are as transitory as inflation numbers. If the inflation per year is 3% then 7% then 3%, you don't skip the 7% just because it was an outlier.
You might not personally agree with it but that was the prevailing wisdom amongst economists until fairly recently. The US Fed in particular didn't start discussing rate increases until early this year, well after FY 2021 was over and 2022 budgets were set.
Your post is based on a belief the central bankers are some all knowing, objectively factual, 100% competent organization.
The transitory inflation parade was so ridiculous that it turned into an internet meme. It’s just like the Fed was saying inflation was 2% when housing was skyrocketing across the country. They’ve literally redefined their measures to the point that their measures have become useless and a meme.
They're very trustworthy and have society's best interests at heart (they actually think they do, with this being a prime example because not saying that inflation is transitory could have provoked some kind of panicked reactions that could have caused more fundamental problems for society).
The, admittedly few, sources of economic information I regularly seek out were saying that "transitory" was a joke from the first time it was mentioned. The combination of money printing, pandemic cheques, national debt, 0% interest rates, low-to-zero percentage bond markets (and probably numerous other things I can't remember right now) meant that raising interest rates could cause more harm than good (although it's inevitable sooner rather than later), and the same goes for slowing down the money printer.
Using the word "transitory" was a one-use-only lie acting as a pressure relief valve, and it was at least semi-obvious to those paying attention.
This round I expect the usual 3% base plus a small discretionary bonus pool and have been setting that expectation with my staff accordingly. Depending on how this year pans out I expect the 2023 raise pool will factor in persistent inflation.