43% set to quit jobs for improved working conditions
EY has released their 2022 Work Reimagined Survey, showing that 43% of employees are likely to quit their jobs, motivated by higher salaries, better career opportunities, and increased flexibility.
The survey canvassed over 1,500 business leaders and 17,000 employees across 22 countries and 26 industry sectors and found that employees have significant influence amid a shrinking labour market and rising inflation.
According to the survey, 35% of employees say that their main motivation for quitting their jobs is a desire for higher pay. This is likely due to record inflation numbers in many countries. Twenty-five percent are looking for career growth, while 42% believe that pay increases will address high staff turnover. However, only 18% of employers agree with this statement.
Last year’s survey found that flexible working arrangements were the biggest driver in employee moves. However, with many companies now offering some flexibility, remote work is less of a factor, at 19%. Seventeen percent say they would leave for well-being programs.
When looking at age groups in the various countries, the survey found that 53% of Gen Z employees and millennials in the US are the most likely to quit their jobs this year. In addition, across all sectors, 60% of employees with technology and hardware jobs are eager to leave.
Despite an improved outlook on company culture, many employees are keen to job hunt. In contrast, employers are less confident about company culture. Similarly, while many employees feel that the new ways of working increased their productivity, employers’ confidence in productivity decreased from 77% to 57%.
In looking at growing skills and the talent gap, findings among employers are:
- 58% agree that it is important to have a strategy that matches talent and skills to business needs.
- 74% are prepared to hire employees from other countries and allow remote work if their skills are critical or scarce.
- 21% believe that improving opportunities to build skills will help address turnover.
In respect of flexible working models, the survey shows that:
- 22% of employer respondents want employees back in the office five days a week.
- Reluctance to work remotely among employees fell from 34% to 20%.
- 80% of employees would like to work remotely at least two days per week.
The survey also examines whether new ways of working boost culture and productivity. It reveals that 32% of “optimist” employers have improved culture and productivity by ensuring that their leaders understand company issues, external practices, and strategies. Other drivers of success are hybrid work, investing in on-site amenities, enhancing workplace technology, and empowering employees.
Liz Fealy, EY Global People Advisory Services Deputy Leader and Workforce Advisory Leader, commented: “This latest survey shows that employees around the world are feeling empowered to leave jobs if their expectations are not met. As employers have increasingly provided flexible work approaches, higher pay is now the biggest motivation for changing jobs, particularly given rising inflation and available unfilled roles.”
Roselyn Feinsod, EY Work Reimagined Leader, commented: “We are seeing a top third of companies successfully navigating these divergent positions on pay, career opportunities and flexibility. They have moved from ‘resistance’ to ‘renaissance’ and that’s a win-win for their companies and their workforce. Organizations have to work to retain their employees, instill trust and provide a package that takes into account total pay, career path and flexibility to balance market concerns and risks.”