Employers Should Support Workers With Better Pay and Growth Opportunities: Study
Gain a few insights from this latest study about workers’ concerns and needs in an evolving labor market and what opportunities they are looking for.
For the last couple of years, there has been an increased focus on the problems employees face. However, despite acknowledging this, very little action has been taken to support them and provide better growth opportunities. Jobcase conducted a study to understand workers’ concerns, needs, and trends in an evolving labor market. Check out the findings from the study.
The last few years have placed a focus on the problems plaguing workers, such as negative or stagnant wage growth, limited or antiquated scheduling expectations and benefits, and a shortage of clarity on growth opportunities. However, despite significant acknowledgment, very little material action has been taken to provide a clear pathway for better support and opportunities for them.
Real change starts with listening to workers themselves. Jobcase recently conducted a survey to understand workers’ problems and the opportunities they need to make sure no one gets left behind. The study also analyzed perspectives of worker concerns, needs, and trends in an evolving labor market. The following are a few findings from the study.
Workers Are Currently Facing a Dilemma
For over a year, the labor market has witnessed the Great Resignation, where people started quitting their jobs in large numbers in search of greener pastures. Now, workers are facing a dilemma. While many people seem satisfied with their current jobs, the study indicated that stagnant opportunities related to career development and pay and a lack of basic employee benefits are damaging workers’ perceptions of connectedness to their jobs.
About 60% of respondents reported not having been paid sick leave. Only 32% felt confident about saving enough for their retirement, and only 32% said they were offered opportunities for promotion.
See more: Compensation and Benefits: How Tech Can Move the Needle for Employee Expectations
Workers Face Stressors Beyond Work
Workers face stress every day, and many reasons go beyond work. For example, some are worried about the pandemic, and a few are worried about the current geopolitical situation, a competitive housing market, and, most importantly, inflation. About 70% of workers felt inflation was their top problem. And while workers struggle to pay for groceries and gas, businesses are making significant profits — 2.4% higher than the CPI is rising. Further, CEO salaries increased more than the typical worker in the last two years.
The following are the top concerns for employees.
Top concerns for employees
Source: Jobcase Survey
Employees Face Critical Challenges That Should Be Addressed
Most survey respondents said their companies tend to treat them fairly. However, a few critical challenges they face at work need to be addressed. These include better career advancement and pay.
Regarding long-term stability, confidence in current and future financial security was weak. While many skilled and hourly workers think about the current situation, they should be given the opportunity to plan for their future.
Workers Are Worried About Their Financial Wellbeing
Inadequate pay is a huge concern for workers. According to the survey, less than 40% were confident they could save for unexpected expenses. About 39% of respondents said their net pay was insufficient to meet basic needs. The top industries where workers feel they lack the income for basic needs include healthcare (55%), office admin (53%), customer service (53%), education (51%), and retail (48%).
Inflation is making the situation worse. As seen above, 40% said their current wages were not keeping up with inflation. As such, many are stretching themselves thin to make ends meet by taking up multiple jobs and side hustles.
But pay is not the only thing workers are worried about. Workers are not receiving proper benefit packages. Several workers lack basic health insurance, and many are living without other forms of employer-sponsored insurance. About 60% also said they had no paid sick time. Added to these frustrations is the lack of opportunities to do anything to improve their compensation. Less than 33% of employees received opportunities for career advancements and promotions. About 32% said they got education assistance or opportunities for training.
Employees Define Certain Factors That Make a Good Employer
Workers face several uncertainties today — political, economic, and personal. They are looking at their organizations to provide certain stability through enough pay, supportive benefits, and leadership that recognizes and rewards the workforce. If their problems remain unresolved, workers plan to take action to accelerate the changes. For example, 70% of workers would consider joining a union if given a chance, according to another Jobcase survey. Ultimately, companies should actively work with their workforce to better support their requirements. This can significantly impact employee recruitment and the company’s bottom line.
How do employees define a good employer? According to 57% and 55% of employees, competitive pay and good leadership, respectively, were table stakes to be considered a good employer. There are a few other things employees expect to consider an organization a good employer. For example, 48% think healthcare benefits, 47% think paid time off (PTO), and 43% think advancement opportunities are indicators of a good employer. Then there are certain indicators, such as good values (36%), retirement benefits (35%), and consistent schedules (34%), that set employers apart from their competitors.
Many businesses may fear that raising pay and benefits may hurt their profits. But they should also remember that not doing so can hurt their bottom line. Not taking care of employees leads to employee turnover, leading to huge losses for the company. Positive employee support helps recruit top talent, lower hiring costs, and better retention. About 68% of respondents said they are more likely to recommend a company if they know that it treats its employees well.
See more: Global Benefits Platform: Key to Meeting Employees Diverse Needs
The Future of (Good) Work
In summary, the study shows that employees have several concerns, from inflation and pay to a lack of opportunities to grow and plan for retirement. And they will not sit idly and wait for unresponsive employers. They need support from their employers now.
The good news is that both employers and employees benefit when the right support is provided. While employees grow, businesses can improve their bottom line and retain valuable talent. Further, research shows that consumers, too, want to reward businesses that treat their employees well. All these are compelling reasons for businesses to create the right policies to support their workers now.
What steps have you taken to provide growth opportunities to your employees in your organization? Share with us on Facebook, Twitter, and LinkedIn.
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