New Jobs & Bigger Paychecks Shake Up the Financial Landscape
With new jobs come bigger paychecks – at least some of the time. A new survey reveals that nearly a third of workers who left their jobs during the pandemic are making over 30% more in their new roles.
But will paychecks keep up with rising inflation? The Conference Board survey also found that 62% of surveyed workers worry their paychecks won’t keep pace with higher prices.
At the same time, the national survey found that money isn’t everything--at least when choosing a job. Setting aside a competitive salary, workers said retirement plans and workplace flexibility top the list of desired job benefits. Amid historic quit rates, companies should take note: To entice workers to stay, more would accept a bigger title over a bigger paycheck in their counteroffers.
The latest workforce survey from The Conference Board captured the thoughts of more than 2,600 predominantly professional/office workers in the U.S. Respondents weighed in on their compensation, other job benefits, and job elements that influence their plans to stay or leave.
Key findings include:
MANY EMPLOYEES WHO CHANGED JOBS ARE GETTING BIG PAY BUMPS.
If you left your organization during the pandemic for another job, which best describes your new cash compensation package (salary + bonus)?
Nearly a third (29%) of employees who left their organization during the pandemic are making over 30% more.
However, 27% describe their new compensation as about the same or less as their previous role, indicating that compensation was not the driver of their decision to leave.
20% received a 10-20% increase in compensation – a standard increase traditionally seen in job moves.
SLIGHTLY MORE WOMEN ARE SEEING A BIG PAYDAY THAN MEN.
If you left your organization during the pandemic for another job, which best describes your new cash compensation package (salary + bonus)?
Slightly more women (31%) than men (28%) indicated that they now earn over 30% more.
Overall, 70% of men saw a pay increase of more than 10%, compared to 64% of women.
More men (13%) than women (9%) left their jobs for an essentially lateral compensation package.
MONEY ISN’T EVERYTHING: PAY IS NOT THE MOST IMPORTANT PART OF CHOOSING A JOB.
Please indicate your level of agreement with the statement “Pay is the most important part of choosing a job.”
Nearly half of workers (45%) disagree that pay is the most important part of choosing a job.
Less than one-third (29%) agree that it is.
WORKERS, ESPECIALLY MILLENNIALS, ARE CONCERNED ABOUT THEIR SALARIES KEEPING UP WITH INFLATION.
Please indicate your level of agreement with the statement “I am concerned about whether my salary will keep up with the rising cost of living/inflation.”
62% of workers agree or strongly agree that they are concerned about their salary keeping up with inflation.
Millennials (at 72%) are more concerned about pay keeping up with inflation than Gen X (at 62%) or Baby Boomers (at 59%).
GENERATIONAL DIVIDE: BOOMERS WANT RECOGNITION, GEN XERS WANT A NEW ROLE, AND MILLENNIALS WANT SALARY INCREASES.
Of those considering leaving their job, 23% of Baby Boomers said recognition for work and accomplishments would make them stay – the top response among that generation.
For Millennials, a 30% increase in the base salary of their current role was the top response (31%), followed closely by promotion to a new role (30%).
For Gen X, promotion to a new role was the top choice (32%).
SENIOR-LEVEL EMPLOYEES ARE MORE LIKELY TO SEE A LARGE SALARY INCREASE WHEN CHANGING JOBS.
If you left your organization during the pandemic for another job, which best describes your new cash compensation package (salary + bonus)?
While 35% of senior leaders (vice presidents, C-suite, CEOs) who changed jobs saw a compensation increase of 30% or more, only 22% of individual contributors who changed jobs saw a 30% or higher increase.
MORE THAN ONE IN FOUR QUIT BECAUSE OF DISAPPOINTMENT WITH THEIR COMPANY.
If you left your organization, or intend to leave in the next 6 months, what most influenced/influences your decision?
Better pay (43%), career advancement (32%), and the ability to “work from anywhere” (31%) remain the top three reasons workers left, or intend to leave, their organizations.
Disappointment with previous/current company was close behind at 27%.
ON-THE-FENCE WORKERS WANT PROMOTIONS, SALARY INCREASES, AND FLEXIBILITY TO PREVENT THEM FROM LEAVING.
If you are considering leaving, what would make you stay at your current organization if presented as a counteroffer? (Respondents were asked to select their top three.)
29% of respondents indicated that they would stay if offered a promotion.
The next two most popular responses, tied at 21% each, were a 30% or higher increase in their current role’s base salary and a 21 to 30% higher increase in base salary.
Flexible or different work location options are nearly as important as a salary increase, with 20% saying they would accept that as a counteroffer.
Notably, 11% would not accept a counteroffer.
BEYOND SALARY, RETIREMENT PLANS AND WORKPLACE FLEXIBILITY ARE TOP PRIORITIES FOR WORKERS.
Beyond a competitive salary, which of these are most important to you now? (Respondents were asked to select their top five.)
72% said company contribution (including a match) to a retirement plan was one of their most important priorities.
Workplace flexibility was selected by 71% as a top priority.
Generous paid time off was selected by 64% as a top priority.
More women than men said workplace flexibility and generous paid time off are important. Workplace flexibility:
- Women: 77%
- Men: 63%
Generous paid time off:
- Women: 71%
- Men: 54%
Equity awards (stock options or stock grants) are among the most important workplace benefits to more men than women.
- Women: 26%
- Men: 42%
More Millennials value workplace flexibility and generous paid time off than their generational counterparts. Workplace flexibility:
- Millennials: 78%
- Gen X: 72%
- Baby Boomers: 67%
Generous paid time off:
- Millennials: 72%
- Gen X: 65%
- Baby Boomers: 58%
“These results reveal that holding onto workers amid historic quit rates is about more than money,” said Rebecca Ray, Executive Vice President of Human Capital at The Conference Board. “While competitive compensation remains important, workers’ priorities have shifted: Flexibility is now table stakes. Workers clearly value their time, as well as the core benefits employers provide. Fostering professional growth and providing flexibility where possible are just as important to retaining talented workers as ensuring that employees are well-compensated.”
WORK FLEXIBILITY IS MORE IMPORTANT NOW THAN EVER.
How have your priorities changed compared to pre-pandemic? Flexible work location, the ability to work from anywhere, and flexible work schedule are the top three priorities that grew in importance for survey respondents during the pandemic.
- Flexible work location: 75% say it is more important now than pre-pandemic
- Ability to work from anywhere: 73%
- Flexible work schedule: 69%
These same three priorities grew in importance to more women than men:
Flexible work location:
- Women: 79%
- Men: 70%
Ability to work from anywhere:
- Women: 77%
- Men: 68%
Flexible work schedule:
- Women: 75%
- Men: 61%
They also grew in importance to more Millennials than their generational counterparts:
Flexible work location:
- Millennials: 84%
- Gen X: 76%
- Baby Boomers: 71%
Ability to work from anywhere:
- Millennials: 82%
- Gen X: 72%
- Baby Boomers: 71%
Flexible work schedule:
- Millennials: 82%
- Gen X: 69%
- Baby Boomers: 64%
REMOTE WORKING IS NOW A SIGNIFICANT – AND PERHAPS PERMANENT – PART OF THE WORK LANDSCAPE.
What best describes your current working location?
48% of respondents indicated that they are currently working 100% remote.
43% have a hybrid work location schedule (some days remote, some days in a physical workplace).
WHY WORK REMOTELY? NEARLY 80% VALUE THE FLEXIBILITY.
If you have chosen to work remotely full time, or this will be your priority in selecting a new job, it is because (select all that apply):
79% of respondents said they value the flexibility of remote work and the opportunity for work-life integration. This was the most widely selected reason.
73% also said that it saves time and money on commuting.
Only 30% indicated that it is easier to balance the demands of child/elder caregiving.
ONLY 7% OF WORKERS WOULD ACCEPT A SALARY REDUCTION TO WORK REMOTELY.
If offered the ability to work remotely full time, but it required a trade-off, which of the following would you be willing to accept, if any?
26% would accept a new role in the same business unit for the option to work remotely.
25% would accept a new role in a different business unit.
18% would accept a move from being a manager to an individual contributor.
- Of those, more men (41%) than women (28%) indicated that they would accept a move from manager to individual contributor (or a similar change in job).
Learn more at conference-board.org.