Tag: pay increase

Millions are looking for higher-paid roles or pay rises

According to a recently published national employee survey showing trends and insights into the UK job market, 52% of UK employees say that the cost-of-living crisis is impacting their career by pushing them to look for a new role or a pay rise from their current employer.

The survey by CareerWallet, went on to reveal that 27% of UK employees are already looking for a new role to earn more money to survive the cost-of-living crisis. A further 25% have either asked or are planning to ask for a pay rise from their current employer.

The cost-of-living crisis has driven up the costs of food, petrol, and energy bills. Of the employees surveyed, those under 30 have been most impacted. Thirty-five percent of these are in the process of looking for a new role. Regionally, the North East is most affected, with 40% of all employees changing roles.

The survey revealed how many employees are impacted by the increased cost of living. It highlights that current salaries and pay rises need to cover these costs to retain their staff and prevent them from looking for opportunities elsewhere.

Craig Bines, CEO at The CareerWallet Group, commented:  “At CareerWallet, we process millions of jobs a day and this allows us to quickly see how the job market is being impacted on a daily basis.

Our national employee survey has highlighted how UK employees are already being impacted by the rise in the cost of living and are actively looking to counter this by pursuing a new role or a pay increase and it is important that all employers are aware of this and act quickly to keep their talented people in their businesses.”

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Cost of living crisis is taking hold

Research from jobs and careers site, Reed.co.uk has shown that 33% of workers have applied for or have considered applying for a new job. In addition, 65% of workers have changed job-seeking priorities in response to the cost-of-living crisis. A salary increase is becoming a common priority for 34% of workers.

The survey, which looked at the opinions of over 2,000, revealed that 22% have said they intend to look for a new job soon and 55% of workers are actively seeking or considering a new one. A further 17% admitted that the increasing cost of living made better work-from-home opportunities more of a priority.

Amongst active jobseekers, the data revealed that 30% of women are more motivated by a salary increase than men (27%). Furthermore, younger workers – between 18-34 – are more likely to consider changing jobs to secure a salary increase than other generations (45% compared to the 29% average).

Fifty percent of workers said that a salary increase is the most meaningful action an employer can take to retain employees, while 47% said that a low salary was the reason they’d want to leave their current employer. Forty percent of workers indicated that they would stay with their current employer if a better salary counter offer were made.

In terms of amounts, the survey showed that employers could retain some workers with moderate increases. For workers aged 55-64 and 65+, most (32% and 38% respectively) agreed that salary increases of less than £1,000 would be sufficient to convince them to stay. For workers aged 18-34 and 35-44, a salary increase of between £2,500 – £4,900 was required by most (33% and 30% respectively) to continue with their current employer.

James Reed, Chairman of Reed.co.uk, commented: “Due to runaway inflation currently at 9.4% and outstripping wage increases across many industries, millions will be on the move from this September onwards to secure a pay bump.

“Although the current economic landscape is challenging, amidst warnings of a looming recession from the Bank of England, UK workers should feel empowered to capitalise on the current labour market which continues to show high volumes of jobs being created.

“However, with inflation potentially rising to 13%, it could increasingly feel like workers are chasing after a galloping horse, with some workers having to take on a second or third job to keep up with the soaring cost-of-living increases. This could lead to a two-speed workforce with workers in some sectors falling behind others.

“It’s a tough situation where very few are benefiting, including employers who are facing a higher turnover of candidates than you’d typically expect in August with over 50% of workers considering a move.

“For employers, a failure to proactively ensure salary packages reflect current inflationary increases will have a significant impact on their business’s ability to attract and retain staff. Understandably, many may not feel in a financial position to deliver significant increases in pay. However, offering desired pay rises costs less than replacing workers and our research shows that the vast majority of candidates (87%) are poised to accept a counter offer from their current employer provided it meets expectations.

“During these challenging times, it’s clear that many workers – particularly those feeling the pinch from the cost-of-living crisis – deserve a pay rise. For most, the best way could be to secure a new job.”

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94% of those who quit their jobs have no regrets about leaving

A report from The Conference Board has revealed that as the Great Resignation’s momentum continues, one-third of workers are actively looking for a new job.

According to the report, 94% of those who left their company in 2021 do not regret their decision with respondents stating that if given a choice to return to their previous organization, a quarter said they likely would.

Rebecca Ray, executive VP of Human Capital at The Conference Board commented: “Despite worries of a recession — and the hiring slowdown and layoffs that often result from a downturn — the labor market remains strong. And the robust jobs market is continuing to empower workers. Our survey results reveal [workers] continue to want more flexibility and higher pay, and they’ll go elsewhere to attain these benefits. But slowing economic growth makes the decision to jump ship riskier. To retain talent, companies should work with their employees to determine to what extent they can accommodate their needs.”

Insights from the report include:

Job seeking: The Great Resignation isn’t over. Thirty-one percent of respondents are actively looking for a new job, while 28% are unsure if they will quit in the next six months. Only 38% indicated they would like to stay with their current company.

Flexibility a driver: Seventeen percent of workers stated that they voluntarily left their company within the last year for a flexible work location, flexible work schedule or the ability to work from home/anywhere with other top reasons for quitting were higher pay and career advancement, cited by 22% and 14%, respectively. Thirty-seven percent of individual contributors quit for more flexibility, compared to 18% of CEOs. Additionally, more flexibility, higher pay and career advancement were the top factors that would influence workers’ decision to stay at their company.

Fatigue: Job fatigue is driving workers to quit, especially women and millennials. Eleven percent quit their jobs over the last year because of workload. A quarter of millennials quit because of job fatigue, while 25% of women left because of job fatigue, compared to 13% of men.

Pay expectations: Fifty-two percent of Gen X and 47% of Baby Boomers said higher pay would influence their decision to stay with their organization. Seventy-four percent of millennials said the same. Meanwhile, 61% of individual contributors would likely stay at their organization for higher pay, compared to 22% of CEOs.

CEO turnover: Forty-five percent of CEOs said they left their organization for a stronger connection to mission and purpose, while 36% left because they had greater faith in the positive trajectory of their new company. The survey included more than 1,100 individual professional workers. It was conducted from June 21 to June 28.

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Salary increases on the rise but workers feel they deserve more

Although salary increases are rising, only 33% of Australian employees are happy with their current benefits. This is according to recruitment company, Hays.

Hays believes that benefits can help bridge the salary expectation gap and aid staff attraction. According to their latest Salary Guide, 35% of employers have improved benefits and working practices to entice more staff.

The data also showed that allowing more than 20 days’ annual leave is one of the most sought-after employee benefits. This year’s data shows that the benefit is desired by 55% of job seekers, compared to 30% last year. The most desired benefit, according to Hays, is training, at 57%. Interestingly, while 87% of employers offer training as a benefit, only 23% provide more than the minimum legal requirement for leave.

Next on the list of top five benefits are:

  • ongoing learning & development (53%)
  • mental and physical health and wellbeing programs (38%)
  • formal career paths (38%)

Flexible working is not on the list of highly prized benefits, likely because although it was a top benefit pre-pandemic, it is now the expected norm.

Professionals are advised to consider the complete value exchange – even if salaries are not meeting expectations, workers should consider whether the benefits they receive enhance the complete value exchange they receive for their skills and experience.

Nick Deligiannis, Managing Director of Hays in Australia & New Zealand, commented: “With a salary expectation gap evident, offering the benefits employees value can help reward and retain top talent in a competitive labour market.”

“The pandemic prompted many people to prioritise their work-life balance and mental health, to care for their health and wellbeing they now want a job that offers more than customary annual leave.”

“If a person’s time is as valuable as money, additional annual leave can add significantly to their overall package.”

“For employers looking to modernise their benefits portfolio to attract, reward and retain staff, it’s important to reconcile your offering with what employees’ value, training and additional annual leave are obvious improvement points. So is the provision of formal career paths, which 38% of employees want but only 20% of employers offer.”

“For jobs that can be performed outside a central workplace, skilled professionals expect to work in a hybrid arrangement,” he said. “After more than two years of hybrid working, it’s no longer considered a benefit that can attract and engage staff but rather a minimum ordinary entitlement.”

“If your salary increase falls short of expectations, consider what else you can ask for. In particular, think of your long-term career objectives. Additional benefits such as training, formal career paths and mental and physical health and wellbeing programs, for instance, could lead to a promotion and higher compensation long-term than a small raise here and now.”

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74% feel unsupported as wages aren’t keeping up with increasing cost of living  

In CV- Library’s survey of over 4,000 workers by website, it was revealed that 89% of employees either don’t know whether they will receive a pay increase or have already been told that they won’t receive one.

With increasing pressure on budgets and wages not matching the increasing cost of living, the study found that only 11% of employees know that they will get a pay rise. Eighty-one percent believe that the topic is being ignored, and 8% already know that they will not receive a pay increase.

As a result, almost 74% feel unsupported and believe that their employers are unsympathetic regarding the rising pressure on household budgets.

Lee Biggins, CEO and founder of CV-Library comments: “There is no doubt that rising costs and global uncertainty are beginning to impact the job market. Whilst businesses need to balance their own increased costs with the salary needs and expectations of their staff, it’s vital that they take action and at least open lines of communication with their employees.”

“With unfilled vacancies still high it will be tempting for professionals to look elsewhere if they don’t have any clarity and continue to feel unsupported. We’re beginning to see evidence of this with number of new CV’s registered on CV- Library last month up 13.4% year on year.”

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