CANADA
Posthaste: Emboldened workers are pushing for higher paycheques as inflation soars
A larger salary is now the No. 1 reason why employees said they'd leave their current jobs, according to EY's 2022 Work Reimagined Survey.
Victoria Wells -
Financial Post
Good morning!
Workers around the world, flexing their newfound bargaining muscle amid tight labour markets, have begun pushing for higher pay as inflation soars, new research suggests.
A larger salary is now the No. 1 reason why employees said they’d leave their current jobs, according to EY’s 2022 Work Reimagined Survey . That’s a change from last year’s research, when a desire for flexibility topped the reasons why people said they’d consider quitting.
Worldwide, 43 per cent said they are looking to change jobs in the next year and 35 per cent of those said it’s because they want to be paid more. Opportunities for career advancement are also a top want, and would spur 25 per cent to leave. But when it comes to flexibility, only 19 per cent said they’d quit their current jobs for one that offered the ability to work from home.
The shift reflects how workplaces have already adapted to employee wants since the pandemic began, EY said. The option to work remotely is now a given for many employees, after staff made it clear that’s what they expected from employers. Indeed, 80 per cent of those surveyed said they want the freedom to opt out of the office at least twice a week.
With flexibility covered, workers have now turned their attention to the climbing inflation rate. In Canada, inflation rose 6.7 per cent in March from a year earlier, the biggest gain since January 1991, Statistics Canada reported. Consumers are consequently dealing with a surge in prices at the gas pump and grocery store, highlighting why a higher paycheque is now more important than ever.
“This latest survey shows that employees around the world are feeling empowered to leave their jobs if their expectations are not met. As employers have increasingly provided flexible work approaches, higher pay is now the biggest motivation for changing jobs, particularly given rising inflation and valuable unfilled roles,” Liz Fealy, EY’s global people advisory services deputy leader and workforce advisory leader, said in a release.
Employers don’t seem ready to cave on pay expectations, however. Only 18 per cent of those surveyed said they think salary hikes can help address a rise in staff departures.
It’s a challenging time for employers looking to fill roles. Tight labour markets are impacting many countries, including Canada. The unemployment rate dropped to a record 5.3 per cent in March, Statistics Canada data showed earlier this month. That’s making it harder for employers to fill vacancies because fewer workers are available in the labour pool.
At the same time, employers are dealing with a high turnover rate as people seek greener pastures, confident they will find what they want in a new organization. Many of these emboldened workers are comprised of gen Z and millennials, EY’s survey showed. Across sectors, people with tech jobs are more likely to say they’d look for something new within the year. That could be an alarming statistic for many employers already battling to find and hold on to scarce tech talent.
Employers must listen to what staff are asking for if they want to stem losses and improve their corporate culture, EY said. Some companies have already made strides in improving staff satisfaction by focusing on hybrid work, investing in on-site technology and giving employees more freedom.
“We are seeing a top third of companies successfully navigating these divergent positions on pay, career opportunities and flexibility. They have moved from ‘resistance’ to ‘renaissance’ and that’s a win-win for their companies and their workforce,” Roselyn Feinsod, EY’s work reimagined leader, said in a release.
“Organizations have to work to retain their employees, instil trust and provide a package that takes into account total pay, career path and flexibility to balance market concerns and risks.”
The survey, conducted in January through March of this year, polled 1,500 managers and 17,000 employees across 22 countries and 26 industries.
Workers around the world, flexing their newfound bargaining muscle amid tight labour markets, have begun pushing for higher pay as inflation soars, new research suggests.
A larger salary is now the No. 1 reason why employees said they’d leave their current jobs, according to EY’s 2022 Work Reimagined Survey . That’s a change from last year’s research, when a desire for flexibility topped the reasons why people said they’d consider quitting.
Worldwide, 43 per cent said they are looking to change jobs in the next year and 35 per cent of those said it’s because they want to be paid more. Opportunities for career advancement are also a top want, and would spur 25 per cent to leave. But when it comes to flexibility, only 19 per cent said they’d quit their current jobs for one that offered the ability to work from home.
The shift reflects how workplaces have already adapted to employee wants since the pandemic began, EY said. The option to work remotely is now a given for many employees, after staff made it clear that’s what they expected from employers. Indeed, 80 per cent of those surveyed said they want the freedom to opt out of the office at least twice a week.
With flexibility covered, workers have now turned their attention to the climbing inflation rate. In Canada, inflation rose 6.7 per cent in March from a year earlier, the biggest gain since January 1991, Statistics Canada reported. Consumers are consequently dealing with a surge in prices at the gas pump and grocery store, highlighting why a higher paycheque is now more important than ever.
“This latest survey shows that employees around the world are feeling empowered to leave their jobs if their expectations are not met. As employers have increasingly provided flexible work approaches, higher pay is now the biggest motivation for changing jobs, particularly given rising inflation and valuable unfilled roles,” Liz Fealy, EY’s global people advisory services deputy leader and workforce advisory leader, said in a release.
Employers don’t seem ready to cave on pay expectations, however. Only 18 per cent of those surveyed said they think salary hikes can help address a rise in staff departures.
It’s a challenging time for employers looking to fill roles. Tight labour markets are impacting many countries, including Canada. The unemployment rate dropped to a record 5.3 per cent in March, Statistics Canada data showed earlier this month. That’s making it harder for employers to fill vacancies because fewer workers are available in the labour pool.
At the same time, employers are dealing with a high turnover rate as people seek greener pastures, confident they will find what they want in a new organization. Many of these emboldened workers are comprised of gen Z and millennials, EY’s survey showed. Across sectors, people with tech jobs are more likely to say they’d look for something new within the year. That could be an alarming statistic for many employers already battling to find and hold on to scarce tech talent.
Employers must listen to what staff are asking for if they want to stem losses and improve their corporate culture, EY said. Some companies have already made strides in improving staff satisfaction by focusing on hybrid work, investing in on-site technology and giving employees more freedom.
“We are seeing a top third of companies successfully navigating these divergent positions on pay, career opportunities and flexibility. They have moved from ‘resistance’ to ‘renaissance’ and that’s a win-win for their companies and their workforce,” Roselyn Feinsod, EY’s work reimagined leader, said in a release.
“Organizations have to work to retain their employees, instil trust and provide a package that takes into account total pay, career path and flexibility to balance market concerns and risks.”
The survey, conducted in January through March of this year, polled 1,500 managers and 17,000 employees across 22 countries and 26 industries.
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