Amid historic inflation, employee salaries aren’t keeping up
Lindon, Utah, September 21, 2022 /PRNewswire/ — BambooHRthe industry-leading provider of cloud-hosted software dedicated to strategic human resource advancement released a new study of 1,000 American adults that examined worker sentiment about compensation and benefits, and found that money on most important – over half (51%) of employees say they would stay at a company or job they don’t like if the salary is high.
in the June 2022inflation on The United States increased to 9.1%, the highest level in over four decades. However, rising prices don’t necessarily mean rising paychecks. The survey found that one in three (36%) employees said they had not received a raise in the past 12 months.
As employers scramble to hire and retain top talent, workers question whether their compensation is what they are truly worth.
“No matter how fulfilling a job is, the salary is important,” he said Anita Grantham, Head of Human Resources at BambooHR. “Our study uncovered how employees really feel about compensation and what HR leaders can do differently in terms of pay transparency and total compensation. Understanding these trends has never been more important as employers focus on improving employee engagement and retention.”
When wages don’t increase, dissatisfaction increases, especially among women in the workplace.
- Over a third of workers say their pay is directly linked to their mental health, and this sentiment is significantly more pronounced among younger workers:
- Over half of Millennials (54%) and 44% of Gen Z say their pay is directly related to their mental health, compared to 27% of Gen X and 19% of Baby Boomers.
- Almost a quarter (23%) of workers describe negative emotions related to their financial rewards at work – 13% feel frustrated and 7% even get angry – but women are more likely than men to say they are dissatisfied with their most recent raise (21% women vs. 14% men).
- More men report a raise in the past year than women (66% men versus 62% women) and of those who did receive a raise, men received an average increase of 6.39% compared to women’s just 5.24 %.
Over a third (38%) of workers say they conduct a salary review annually, but that doesn’t mean everyone is on the same page. More than a third of employees also state that they were unaware of the benefits of their current company until onboarding. So who is responsible for starting the conversations and ensuring transparency?
- Although half (47%) of employees say employees should always be the ones to initiate compensation discussions with their employer, nearly a quarter (22%) don’t feel comfortable proactively addressing compensation.
- Employers take the initiative by starting the conversation. For employees, the average review is every 8 months and 16 days.
- And the employees expect them. 75% of employees prepare for compensation discussions with their employer. How do you prepare?
- Research similar roles online (32%)
- Based on desired compensation based on previous work history (30%)
- Asking other people in their industry about their compensation (28%)
- 60% of employees say they exclude employers who are not transparent about salary issues when looking for a job.
Salary is important, but it’s not the whole picture. Benefits are so important to employees that many would be willing to take a pay cut and if they aren’t getting what they need, they will quit.
- 30% of employees have left their jobs because of the benefits package alone.
- Some employees would take a pay cut for certain achievements:
- 41% would be willing to take a 7.8% pay cut for health insurance benefits
- 38% would be willing to take a 7.6% pay cut for paid time off benefits
- 37% would be willing to take a 7.6% pay cut for flexible work locations and/or hours
- Work-life balance is also a priority. Employees indicate that flexible hours and location are almost as important when considering a job offer as dental and eye care services.
To read more in the full report on employee sentiment towards benefits and compensation or tips for hiring managers, visit: https://www.bamboohr.com/resources/guides/compensation-trends
BambooHR conducted this research using an online survey created by method research and expelled from cint among n=1,000 adults (aged 18 and over) in The United States who are employed full-time. The sample was split evenly by gender, with a spread of age groups and regions represented, and legible racial groups. Data was collected from June 21 to June 28, 2022.
BambooHR is the world’s leading HR and payroll platform for growing businesses. We’re on a mission to empower the three million employees in more than 30,000 organizations by giving them intuitive HR tools, insights and support to create exceptional employee experiences. The company was founded in 2008 by Ben Peterson and Ryan Sanders, who created a values-driven, award-winning internal culture that then inspired BambooHR’s products and features. BambooHR customers include Asana, Foursquare, Stance, Change.org and Postmates. To learn more, visit bamboor.comconsequences @bamboohr or join 30,000 other HR change agents at our annual Virtual HR summit.
SOURCE Bamboo HR LLC