Great Resignation Leads To an Increase in Pay and Benefits
Many employers are struggling to turn back the tide of employees resigning in businesses across the country. These employers have tried many tactics, but new research indicates that most organizations are attempting to fight this trend by offering workers more pay and improved benefits.
This survey of organizations included hundreds of executives and thousands of workers and human resources professionals and uncovered data on a number of the trends taking place in the “Great Resignation.” This research has confirmed two important details on the employer’s end that most people have taken for granted. First that about half of employers are struggling with much higher than average turnover in the last six months. Secondly, most open positions are being left unfilled for much longer than normal.
According to employees, more than half of employees that haven’t left their jobs have been forced to shoulder a greater load of work, and as a result, they are now questioning whether they are being paid enough. This trend is particularly strong among Millennials and Gen Z employees, who now make up the majority of US workers.
In turn, many employers are responding by offering greater wages and benefits to attract job seekers and in order to retain their current employees. In fact, more than half of employers have indicated that they have raised starting salaries as well as wages beyond ordinary annual increases this year.
In addition, those employers that have faced higher turnover in the last six months have added further benefits. This includes nearly half of these organizations adding new options for flexibility and remote work, nearly a third offering new or increased referral bonuses, and more than a quarter adding merit increases.
The fact is that the job market is clearly favoring job seekers right now. In response, employers are attempting to find ways to attract new employees and encourage those they have to stay. Some have pointed to a basic rule of economics as a way to look at this market right now. When demand goes up without an increase in supply, so does the price. In response, employers need to pay more in order to purchase the work they need; otherwise, they simply won’t be able to find workers. For employees, this means better pay and benefits as well as their choice of positions. However, in many cases, employees may be able to thrive best where they already are by discussing their needs with employers before leaving to start elsewhere.