While employee retention is not necessarily a new concern for employers, the race to keep top workers in-house has escalated significantly in just the past year alone. In fact, new findings from the 2017 Emerging Workforce® Study (EWS) indicate that employees are more willing than ever to test their options, to the degree that companies may have to replace one-fourth of their staff by the end of the summer.
According to the EWS, one in four workers (25 percent) plan to look for a new job sometime in the next three months, with more than one-third (35 percent) planning to do so sometime in the next year.
With an improved economy and overall job market, namely within the specialized industrial and technology fields, workers believe they have more options available – and therefore, the ability to demand a higher salary either from their current employer or a competitor. Twenty percent cited compensation as the primary reason they plan to explore their professional options, more than any other employment factor. Likewise, 35 percent of workers believe that although they accepted a lower salary when they started their current role, they should be paid more today.
Despite employees’ outspoken desires for higher compensation, and the escalating crunch for talent, employers remain indifferent about how to proceed. The Study found that businesses value retaining high-performing and productive workers, but also are mindful of overall fiscal responsibility. Nearly two-thirds (62 percent) of surveyed companies say they recognize a need to pay higher wages to remain competitive, but simply cannot afford to do so at this time. With a significant segment (74 percent) also noting that their competitors are raising wages to attract top talent, employers’ reluctance to raise pay ultimately may force employees’ hands. Although salary remains a primary motivator, the EWS uncovered that many additional factors are influencing the retention and recruitment race, and shaping the overall workplace in turn.
Equal Pay for Equal Work
Beyond their own salaries, workers are paying greater attention to comparable wages, and thus far are not thrilled at what they see. The EWS notes that perceived pay scale inequality is more prevalent in today’s workplace, and risks furthering the divide between employers and employees.
While more than three-fourths (82 percent) of employers believe they offer equal pay for work regardless of gender, a far lower number (54 percent) of employees feel the same way. Additionally, the EWS found that males are far more likely to perceive pay equality in a given company than females, among both the employer and employee audiences. Although wage equality is both a hot button issue and potentially sensitive subject in today’s workplace, the EWS indicates that it’s a topic employers must be prepared to address to maintain favorable employee morale and longevity.
Work Where I’m Wanted
Some workers believe their employers do not appreciate their contributions, making them more likely to consider moving to a company that will. “Feeling undervalued” topped the list of non-financial reasons workers gave for their interest in exploring alternate job opportunities. Likewise, 23 percent of workers feel their employers put in less effort to retain them this year than last.
This perceived lack of trying stems from disconnects around critical retention drivers. Employers believe that employees are more concerned with intangibles such as their supervisor relationship and overall work environment, while employees cite financial compensation, benefits, and growth and earnings potential among the top factors influencing their decision to remain at their current company. Not coincidentally, one-fifth (20 percent) of workers say their employer has reduced their benefits package in the last year.
A Widening Skills Gap
Employees also may be considering new professional opportunities to find a better environment to showcase and develop their skills. As reinforced by the EWS, employers and employees not only failed to close the long-looming skills gap this past year, but actually have allowed it to grow even wider.
More than one-third (38 percent) of workers worry about falling behind in acquiring new skills needed for the future, while a similar segment (37 percent) feels they cannot achieve a promotion with their current skills alone. The EWS also notes that a lack of ample training and development may be shaping employees’ fears. Only 18 percent of workers would give their companies’ training and development programs an “A” grade, while nearly half (46 percent) would instead offer a grade of “C” or lower. In particular, employees are concerned that the training programs their company offers are not relevant to their skill sets, and thus nothing more than a distraction from their job duties.
Now in its 20th year, the Emerging Workforce® Study has tracked the shifting opinions and attitudes of workers and their employers in the context of ongoing social and economic events. The 2017 Study also explores employers’ and employees’ opinions on key workplace themes and topics including workplace collaboration, staff diversity, the transformation of the modern “office” and work/life balance.
Source: Spherion Staffing