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A new report has shown that “money talks” when it comes to workers considering whether they would switch jobs.
Insights from Robert Half have found that one in two workers would feel compelled to switch jobs if they came across another position that offered a higher salary. As volatile economic conditions continue amid sustained inflation, 52 per cent of workers claimed they would leave their employer for a higher salary.
On the other hand, 48 per cent of workers claimed they would not leave their current position for another job posting a higher salary, whereas 36 per cent needed both the higher salary and the right opportunity to forgo their current position. Sixteen per cent are currently content with their role, regardless of a job offer with a higher salary.
“It’s clear that money still talks,” said Nicole Gorton, director at Robert Half.
“At a time when pay is a major consideration to combat the ongoing cost-of-living crisis, many employees prioritise job security as organisations strive to meet efficiency goals, further highlighting the tension between meeting financial desires and building a sustainable career while navigating ongoing job security concerns.”
Around a 22 per cent pay rise would lead to an immediate resignation for most workers; however, the data showed that many would change jobs for even less than that. The most common pay rise needed was 20 per cent, with about one in 10 workers stating they would change jobs if their salary would increase by 30 per cent or more.
Workers noted feeling undervalued, claiming that their current salary fails to reflect their expertise, experience, and responsibilities, with less than half (42 per cent) agreeing that they were paid appropriately.
The other 58 per cent claimed an increased salary would better reflect what they bring to the table and the work required of them. Increases of 10 per cent to 20 per cent were the consensus of what would be an accurate reflection of their expertise, experience and/or level of responsibility.
“The research indicates that many workers feel undervalued, highlighting a gap between employee expectations and current compensation levels,” said Gorton.
“This can be due to stagnant wages despite increased responsibilities or a perception, whether accurate or not, that their compensation lags behind industry standards for similar roles.”
The average percentage increase that workers claimed they would need for their salary to be an accurate reflection of what they offer their organisation is 12 per cent.
“Employers need to pay close attention to these sentiments and ensure they are not only offering competitive salaries that reflect the true value employees bring but also clearly communicating what competitive compensation means for their individual employees,” said Gorton.
Kace O'Neill
Kace O'Neill is a Graduate Journalist for HR Leader. Kace studied Media Communications and Maori studies at the University of Otago, he has a passion for sports and storytelling.
