NYON, SWITZERLAND — New workforce research by beqom highlights the challenges faced by firms trying to recruit and retain talent as the Great Resignation persists, and suggests ways for employers to adapt.
According to the survey of 2000 workers in the US and UK, 69 percent of workers have looked for a new job in the past year (65% US, 72% UK). That number is even higher for Millennials (75% US, 77% UK). What would entice them to switch? More flexibility in working hours and location, and transparency in pay practices, among other things.
In addition to employees’ motivation to move on, many think their current company does not pay employees fairly (29% US, 37% UK). Surprisingly, fewer than half of employees even know their total compensation (48% US, 42% UK).
These are just a few of the findings in beqom’s 2022 Compensation and Culture Report, which uncovered how the changing workplace has altered employee perceptions around total rewards, benefits, transparency, and pay equity in the last year.
The survey shows that workers want transparency. While looking for employment, job seekers are more likely to apply if the job description lists the salary range (84%) and clear requirements on hybrid, remote or full-time in-office work (75%). Employee benefits and perks were also important to job seekers, varying from 81% in the US to 67% in the UK.
“As we’ve come out of the height of the pandemic to what appears to be a new normal, workforce priorities have changed rapidly,” said Tanya Jansen, co-founder of beqom. “Not only have employee priorities shifted even further in the second year of the pandemic, but the hiring dynamic has been flipped on its head, forcing companies to adapt to attract and retain employees. Creating a culture of transparency from the start in all areas — from compensation and job responsibilities to location requirements and DE&I — are critical components of creating a workplace that will attract the right workers who choose to stay for the long term.
"Fewer than half of employees know their total compensation (48% US, 42% UK).
Additional findings from the report show that:
Most Companies Don’t Share Their Pay Gaps or Pay Gap Goals
- More than a third (37% US, 38% UK) of employees say their company does not share its current gender pay gap internally or externally.
- Just 15 percent of employees reported their company shares their current gender pay gap internally, and a large majority of employees (65% US, 77% UK) reported their company did not share goals for closing pay gaps.
- A lack of pay gap transparency may be why a substantial number (22% US, 31% US) don’t know whether there are pay gaps within their company, and some (20% US, 11% UK) think pay gaps have increased in the last year.
Working Parents Have Gained More Benefits, But Many Still Consider Leaving the Workforce
- Providing flexible schedules was more prevalent among UK employers, with nearly two-thirds (61%) of working parents saying their workplace had eased demands on strict “9-to-5” availability, compared to less than half (47%) of US working parents reporting the same.
- Increased paid time off was more prevalent amongst US companies (47%) than in the UK (23%). In the US, 40% said their companies have offered new childcare subsidies, compared to only 19% in the UK.
- More than half (58% US, 57& UK) have considered looking for a new job that has more flexibility and almost half (48% US, 41% UK) have considered leaving the workforce due to managing childcare.
Employees Are Learning More About Salary Discrepancies in Their Company, and Taking Action to Change Their Own Compensation
- The majority of workers (58% US, 69% UK) have talked to a colleague about their salaries in the last year and many (43% US, 35% UK) learned a colleague in their equivalent role with similar experience is making more than them.
- More US men (64%) than US women (51%) have talked to a colleague about their salaries; the gender discrepancy is less in the UK (men 71%, women 68%). Millennials (67%) and Gen Zers (66%) are the most likely to have had those conversations.
- In the US, half of employees have asked for a raise or promotion in the last year, compared with only 35 percent in the UK. Gen Zers (60% US, 53% UK) were the most likely to have asked for a raise or promotion.
Most Employees Could Be Swayed to Consider a New Job
- The majority of employees (70% US, 78% UK) would consider switching jobs for more flexibility in working hours.
- Other reasons employees would switch include unlimited paid leave (69% US, 77% UK), more flexibility in working location (68% for both), more pay transparency than their current company provides (60% US, 57% UK), executive compensation tied to ESG initiatives (52% US, 49% UK), a greater focus on sustainability and CSR initiatives (51% US, 41% UK) and a built-out DE&I strategy (46% US, 41% UK).
To learn more about beqom’s 2022 Compensation & Culture report and view additional findings, download the full report.