Bad news for employees looking for a raise, telecommuting and a shorter workweek
This week, Payscale released the results of its global survey, The 2023 compensation best practices report.
That’s not great news for employees: few employers are offering Salary increase and who wouldn’t be really generous. For those who love the idea of being more flexible in their working life? The survey shows that there are increasing barriers to remote work arrangements. Senator Bernie Sanders’ four-day work week? Forget it.
The report, conducted between October 2022 and December 2022, covers nearly 5,000 employers based in the United States (69%), Canada (8%) and Europe, the Middle East and Africa ( 17%), was a bit disappointing.
Workers still voluntarily exited
That is a tough tagline in the labor market for many companies. According to the report, 6 out of 10 organizations experience labor shortages and have difficulty attracting and retaining talent by 2022. And while many expect that the turnover rate of If workers are likely to fall to about 25%, down from 36% in 2022, this is still an important issue.
Last year, for many employers, the ability to work remotely was a saving grace when it comes to recruiting and retaining workers.
“In our monthly jobseeker confidence surveys last year, we found that 60% of job seekers on Zip Recruiter say they want to find jobs remotely,” Julia Pollak, chief economist at ZipRecruiter, the job search website, told Yahoo Finance. “Many shifters have taken advantage of the hot labor market to move to remote or hybrid positions.”
And for companies, the shift to telecommuting “has dramatically increased hiring and retention, while reducing pressure on salary increases as they can now hire where there is no cost.” lower fees of the country,” she said.
Not that corporations bury their heads in the sand, they get it. The majority of organizations (55%) say that insisting on asking employees to come to the office puts them behind when it comes to recruiting and competing for talent, according to Payscale data. This is up 11% from last year when almost half of the organizations felt that hardship.
In fact, the majority of organizations (51%) surveyed by Payscale “are experiencing employee resistance when asked to return to the office,” according to the report.
That challenge won’t surprise Amazon CEO Andy Jassy, who recently announced required to return to the office at least three days a week starting May 1 to the utter dismay of thousands of angry employees who have come out suggestion to fight back.
Workers protested returning to the office; Employers don’t back down
Less than a quarter of companies grappling with workers wanting to work remotely feel that the impact is large enough to consider a policy change.
Call it what it is, a shrug.
In the meantime, one of the more important findings: about a quarter of the employers surveyed by Payscale pay employees who don’t come to the office less than those who work for the same position.
Payscale found that some companies are growing at an average rate – 10% believe hybrid offices are attractive and have done a great job of slowing turnover and increasing satisfaction and engagement. associated with workers’ jobs, Payscale found. And according to the data, that’s the work environment of just over a quarter, or 27% of employers.
Most organizations, nearly 60%, describe their office environments as traditional or hybrid, which means all or most employees will need to live within a movable distance. office even if they sometimes work from home, Amy Stewart, VP of content and editorial, told Yahoo Finance.
However, companies that offer truly remote work, which make up about 11% of those surveyed, will still have a major competitive advantage this year in attracting and keeping them, says Stewart. talent feet.
Four-day week? dream of
Senator Bernie Sanders (D-VT) is an advocate of shortening the work week from five days to four days – and believes workers should not have their pay cut as a result.
“With the explosion of technology and increased worker productivity, it’s time to move forward to a four-day work week without a loss of pay,” Senator Sanders tweeted from his government account on Sunday. earlier this week. “Workers must benefit from technology, not just corporate CEOs.”
The impetus for his comments are new findings from a six-month study test program employs around 2,900 workers across 61 companies in the UK ending December 2022. British companies in industries ranging from marketing to construction allow employees to work four days a week for the same pay. .
The end result: Morale, productivity, and employee retention all increase. And more than 9 out of 10 businesses will continue on a shorter weekly schedule, according to the report. That’s a good thing because up to 15% of participating employees say “it doesn’t take a lot of money” to convince them to return to work five days a week.
But don’t get too excited that you’ll soon see anything like it in this country, even with the endorsement of Senator Sanders. Payscale shows that a small 10% of US companies plan to offer shorter weeks by 2023, up from 9% in 2022.
Yahoo Finance Do: Undoubtedly, to build loyalty and company culture, bringing a team together can be magical, especially for young workers just starting out in a professional job. their first career. In the end, the hybrid model seems to resonate and fulfill the needs of both. Given that employers are still grappling with workers exiting at breakneck speed, this is worth considering. Four-day workweek? Like we said, “dream about.”
Kerry is a Senior Correspondent and Columnist at Yahoo Finance. Follow her on Twitter @kerryhannon.
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