Inflation and a looming recession are stressing employees across the globe so much that they’re looking for better-paying jobs.
True, this has been going on for a while now. But the point is, it’s not stopping and it’s not getting any better.
Salaries aren’t keeping up with inflation
In fact, a new survey – conducted between Oct. 13, 2022, and Oct. 30, 2022 – of 1,100 global professionals found that 80% of respondents reported their current salary isn’t keeping up with inflation. Ninety-two percent of respondents said the instability of the economy has affected their career and financial decisions. So much so that 47% have started looking for higher-paying jobs and 31% have taken on side jobs or started freelancing, according to Remote.co’s Work & Financial Wellness Report.
“This may seem alarming to HR professionals who are already challenged with navigating a tight labor market amid a shifting global economy,” says Toni Frana, Career Services Manager at Remote.co and FlexJobs. “But it underscores the importance of building a healthy company culture and strong retention efforts to keep top talent, such as paying fairly, offering flexibility like remote work options, promoting from within, providing competitive benefits, offering career development opportunities, and creating a feedback loop for workers.”
Part of why so many people are looking to jump ship or pick up extra work is they’re concerned about their job security over the next three months. Two-thirds said they were “extremely concerned” (32%) or “somewhat concerned” (31%). Only 17% of respondents weren’t concerned at all.
Time to remind workers of their value
In response to this, increasing overall salaries is what most employers are planning to do to compensate for inflationary pressures (77%) and tight labor market concerns (68%), according to the latest Salary Budget Planning Report by WTW, a global advisory, broking and solutions company. But that’s not the only option.
With this pressure top of mind for so many workers, it’s a good time for HR teams and leaders to remind and reassure employees about the value they bring to their organization – especially if you’re operating in a fully remote or hybrid workplace. Show appreciation, lead with empathy and recognize employee efforts from all levels. For example, regularly spotlighting individual wins across company-wide meetings or over tools like Slack provides the chance for everyone to celebrate one another’s work as a team.
“When coupled with a competitive salary and benefits package, these small and intentional practices can help workers feel more secure in their career choices,” says Frana. “Plus, consistent and continued appreciation will develop a strong and supportive company culture, foster greater engagement and create employee loyalty.”