A survey by Gartner Inc. found that 63% of executives plan to make compensation adjustments in response to high inflation.

It also estimates the US employee annual voluntary turnover will increase nearly 20% this year, with approximately 37.4 million employees quitting. That’s up from the pre-pandemic average of 31.9 million.

“Many organizations are willing to take a less-competitive approach to compensation while they wait for the labor market to cool down,” said Tony Guadagni, senior principal in the Gartner HR practice. “Yet, these organizations will find themselves at a significant strategic and operational disadvantage if demand continues as anticipated — especially as other employers offer higher base pay salaries.”

The survey was conducted in March 2022 and included responses from 157 executives.

Gartner recommends organizations follow four strategies to attract and retain talent in current times:

Increase compensation and benefits. Employers should provide substantial signing bonuses; offer lucrative benefits, including tuition reimbursement or retention bonuses; and separate pay from location.

Pay with time. This includes providing employees with work schedules that offer greater work-life balance. Organizations should either guarantee a maximum workload of hours for a given task or adjust compensation for hours worked.

Invest in internal mobility. To ensure attractive offers from competitors don’t overshadow internal career progression opportunities, employers should consider increasing investments in their internal labor market through accelerating internal promotions.

Widen talent pools. To help fill critical positions, HR leaders may consider candidates from unconventional backgrounds seeking new career paths. Organizations should reevaluate qualified talent and predictors of long-term success, including skills adjacencies and reducing or eliminating education or location requirements.