Glassdoor survey shows that more than one in three employees will search for a new job if they do not receive a pay rise in 2015
With more job growth expected in 2015, more than one in three (35 percent) employees report they will look for a new job if they do not receive a pay raise in the next 12 months, according to the Glassdoor U.S. Employment Confidence Survey. This comes as employee optimism in the job market reaches a new high in six years, with nearly half (48 percent) of employees (including those self-employed) reporting confidence they can find a job matching their current experience and compensation levels in the next six months. In addition, this quarter’s survey, conducted online by Harris Poll, reveals employee expectations around pay raises and job search activity this year as well as sentiment around pay inequalities.
With employee confidence in the job market at a new high, more than two in five (43 percent) employees report expectations of a pay raise in the next 12 months. If employees do not receive that pay raise, more than one in three (35 percent) report they will look for a new job.
Employees expecting raises have also made it clear when it comes to how much more they expect to get paid in 2015, as half (49 percent) of those who expect to get a raise in the next 12 months say they expect it to be between 3 and 5 percent. This varies slightly by gender, with more men (52 percent) than women (45 percent) expecting a 3 to 5 percent pay raise. Some employees are expecting a much bigger pay raise, as 4 percent report expectations of a pay raise between 50 and 100 percent.
However, it appears there may be work to do in 2015 by employers and employees to fix any pay inequality gaps between men and women within companies. At the start of the new year, most employees (62 percent) report they do not believe men and women are paid equally. In fact, a stronger majority of women (75 percent) do not believe men and women are paid equally, compared to half (50 percent) of men.
“The job market is making a strong recovery and with that comes the reckoning of pay inequities and an increased awareness of salary transparency. Employees are making it known that they expect to get paid more in 2015. In fact, if they don’t, they will jump ship and find a new opportunity. Therefore, it’s time for employers to dust off the playbook from the economic growth years and pay attention to compensation practices that retain talent,” said Rusty Rueff, Glassdoor career and workplace expert. “It’s also time for employers to recognize and address the fact that most employees still do not believe men and women are paid equally. Overall, it is a time of reckoning; one in which employers should use the start of the new year as an opportunity to reevaluate internal pay structure, fix pay inequalities that exist, and be transparent with employees about how compensation and pay raises are determined. Employers that do this well will reap positive recruiting and retention rewards, and those that don’t will put themselves at higher talent retention risks.”
In addition, the Glassdoor Employment Confidence Survey monitors four key indicators of employee confidence each quarter for the past six years: job market optimism/re-hire probability, job security sentiment, salary expectations and business outlook optimism.
Full press release on www.glassdoor.com
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