If you don't have a retention problem already, you may have one soon. That's because a record 4.4 million workers quit their jobs in just one month, and there's no sign of that trend slowing down. In fact, Google searches for how to send resignation emails were up by about 3,500 percent in the last three months. That's due to the fact that workers across industries are re-assessing the role that work plays in their lives, eagerly searching for roles that are more meaningful — and better paying.
What does this mean for employers? While not every role can be made more meaningful or to serve a bigger purpose, every role can be better compensated. Pay is the lever employers across the board can use to keep their top performers, and many leading employers have gotten that message loud and clear. Companies ranging from Amazon to Bank of America to Walmart and beyond have increased compensation across a variety of roles to stave off talent shortages. So if you haven't already done so, here's why now is the time to reconsider your compensation.
a record 4.4 million workers quit
better pay and retention go hand in hand
From restaurants and hospitality to retail to manufacturing and logistics and beyond, employers of all stripes are contending with a growing talent shortage — or at least a shortage of talent attracted to the jobs they're offering. That's because many workers are no longer content to keep jobs that don't pay what they feel they're worth. But how many actual workers feel that way?
As it turns out, almost all of them.
According to PayScale's Compensation Best Practices report, only 22 percent of employees feel they're paid fairly. That's probably why a Gallup study of U.S. workers found that more than half of employees (51%) are searching for new jobs or watching for openings. For employers, the message is clear: Compensation offerings have to improve, or they'll face a shortage of workers sooner rather than later.
just 22% of workers feel they're fairly paid.
what this means for employers
Given the rate of change in today's workforce landscape, what can business leaders do to stay ahead and position their companies for growth? The right talent, the right structure, the right culture and the right compensation are essential. Leaders must work proactively to forecast talent needs in light of shifting organizational goals if the business is to meet its growth objectives.
At Randstad, our goal is not only to help our clients find great talent today, but also to position them for success in the future. We have unique domain expertise, as well as a large network of nationwide talent, and our knowledge of industry trends enables us to help you benchmark and — when needed — strategically modify pay to maximize the benefits of a wage increase. For employers considering increasing wages, we can ultimately help you understand the impact of such a decision — not only in the near term, but also on the productivity, operations and overall financial health of your organization.
Contact us today to learn more about these important workplace trends and how Randstad can partner with you on all of your staffing needs.