Annual raises can be an essential component of the retention puzzle, but according to recent data reports, they are occurring less frequently and are, on average, 25% lower. That presents a challenge in a society where living expenses are always rising.
Employers are pressured to make financial sacrifices in an effort to keep their companies afloat in the present challenging economic environment. Retaining staff is likewise a top priority when there is a shortage of competent talent, but many firms lack the means to offer the competitive benefits that top talent requests.
Employees and employers face difficulties as a result of irregular raises that don’t keep up with inflation, the cost of living, or other compensation trends. The following information is essential.
According to the study, this past year, two out of every five paid employees (41%) did not receive raises, up from 33% in 2022. Furthermore, the rises this year were only 4.6%, down from an average increase of 6.2% in 2022. This represents a 25% reduction.
It’s expected that 29% of workers will not be receiving a rise in pay or promotion in the upcoming year. The pay projection for 2024, which goes beyond pay increases, is a reflection of the recent economic difficulties, which include ongoing concerns about job security and the problem caused by rising living expenses.
Seventy-three percent of workers stated they would think about quitting their current position in order to get a better salary, and 48 percent of them had considered doing so during the previous six months. Additionally, they are willing to leave for a wage raise of 13.3%, which is less than the 16.1% increase they received the year before.
The study additionally discovered that workers are persistent for the appropriate reasons:
- In the event that the pay was sufficient, 44% of people would continue in a job they detested.
- A quarter of respondents indicated they would be prepared to forgo a raise in exchange for a year’s worth of job security.
- Another twenty-eight percent would do the same in exchange for a more accommodating work environment.
Additional read: 10 Recruitment Trends to Keep An Eye On
What HR Can Do To Allay Worries And Raise Contentment?
Employee satisfaction with salary in the new year appears to be quite low, based on the numbers. Raising pay alone isn’t always an option, with many organizations finding it difficult to survive economically challenging times. HR professionals should take the following actions to assist in relieving employee workloads without compromising employer resources.
Consider Factors other than Salary
According to the research, employees were willing to forgo more pay in exchange for extra benefits like job stability or flexible work schedules, even when they occasionally expressed dissatisfaction with salaries. Organizations may find this to be an excellent chance to increase happier workers by offering advantages beyond pay. Employment-life balance and productivity are two more aspects of employment that can be enhanced by some of these benefits, such as flexible work hours.
Communicate Frequently and Clearly
It can be beneficial to maintain alignment of expectations if wage ranges are disclosed from the beginning. Speaking about the issue is something that some people might overlook. However, by doing so can avoid misplaced expectations and discontent if staff members are informed about the company’s financial situation. Also the ongoing conditions of the broader industry should also be elaborated.
Take Feedback and do the Analyzation
When it comes to employee satisfaction, listening can go a long way. Receiving employee
Concerns over compensation can be helpful in identifying areas where you can enhance workplace satisfaction and overall quality of life, even if you lack the resources to make pay improvements.
Wrapping Up
While it’s difficult to predict exactly how compensation trends will evolve, one thing is clear: companies will need to be strategic in their approach to employee compensation to remain competitive in a changing landscape.
We at Dynamic Staffing Services will play a critical role in helping companies navigate these changes by providing information and guidance on the latest industry trends, employee expectations, and compensation strategies. In an increasingly competitive labor market, you can stay ahead of the curve and recruit and retain top talent by partnering with us.
To learn more about our services, you can call us at +91-11-40410000 or email enquiry@dss-hr.com
Visit our Website: Dynamic Staffing Services.
