Workers switch jobs for many reasons, including the opportunity to increase their take-home pay. Now, a new study from Pew Research Center shows that pay increases are benefiting workers who job hop more than ever.
The new findings show that 60% of workers who switched jobs between April 2021 and March 2022 earned more money from their new employers, even when inflation rates were factored in.
The bottom line? Job hopping can improve the bottom line for workers and their families. Unfortunately, many workers who stay put are feeling the effects of inflation on their personal budgets, especially if their employers haven’t adjusted pay or provided inflation stimulus bonuses this year.
There are many reasons employees consider a job search, and the opportunity to make more money can be a powerful incentive. According to Pew, about one in five workers are currently looking for a new job or plan to within the next six months. However, even as the Great Resignation continues into 2022, and quit rates are at their highest since the 1970s, there are workers who want to stay in their current jobs.
60% of workers who switched jobs between April 2021 and March 2022 earned more money from their new employers, even when inflation rates were factored in.
PEw Research center
Step up your employee retention
Recruiting, hiring and onboarding new employees is a huge investment of time and resources, especially if your company is trying to manage this process in-house without an outside partner. Fortunately, many human resources teams work hard to retain valuable employees as well as keep a pipeline of talent steadily flowing to cover normal attrition.
How can you encourage employees to stay in the “new normal”?
- Consider increasing your company’s annual budget for employee pay to help offset the effect of inflation.
- If raising pay beyond normal percentages doesn’t work for your company, consider ways to boost your benefits package, for example, a medical insurance plan with lower copays that helps reduce financial pressure on employees.
- Embrace pay transparency practices that help employees understand their pay range and ways they can improve their value.
- Coach your managers to help them have open, thoughtful dialog with their workers about pay and total rewards compensation packages.
- Encourage your employees to approach their managers with questions about pay.
- Consider flexible schedules for employees who want to work from home.
Considering a job switch?
If you are one of the 22% of American workers actively looking for a job, or planning a search soon, it can be tempting to focus entirely on the base salary when considering an offer. However, many candidates who accept jobs based entirely on pay may later regret their decision and want their old jobs back in what The Muse calls “shift shock.”
Here are some key strategies for job seekers:
- Take the time to think about your priorities and how a total compensation package might help you meet them.
- For example, do you want to be able to work from home one or two – or more – days per week? How much money could that potentially save you?
- Understand that titles vary from company-to-company, and even from department-to-department, within a company.
- Find a trusted advocate who can help you navigate your industry, set realistic goals, and work on your behalf to negotiate offers from potential employers.
Hiring? Show value!
With two jobs for every candidate right now, creating a value-driven offer that is based on current competitive data can make all the difference to a job seeker who wants to make more money. Changing jobs is stressful for workers, and there are many ways to reward them for trusting your company with their career.
- Conduct an audit of your pay ranges to make sure they are competitive with similar-sized businesses in your industry.
- Find ways to enhance your total rewards with benefits that have tangible financial outcomes for your employees and new hires.
- Create an environment where open dialog about pay is encouraged and supported and be ready to share your pay philosophy with candidates.
- Provide flexibility to workers. Even one day a week can make a big difference in the quality of life and job satisfaction of your employees.
- Partner with a well-respected staffing company that is well versed in current best practices for hiring in an extremely competitive environment.