Employment/staffing agency Randstad has announced the results of its 2020 US Compensation Insights survey, which reveals that compensation transparency, fair pay and pay equality remain key factors in employee retention. The survey, which explored the sentiments of American workers on salary negotiations and how fairly they believe they’re paid, shows that 51% of women are considering leaving their jobs because they believe they’re underpaid.
In fact, 72% of women, compared to 59% of men said they would make a lateral move to a different company just to receive a salary jump they wouldn’t get if they stayed at their current company. So there’s still plenty of room for improvement when it comes to achieving gender pay equality.
PAY TRANSPARENCY
The survey also found that all employees, despite their age, desire greater pay transparency. Around 55% said their companies do not publish pay information for each role, and 60% wish their employers would make that information available across the company. Furthermore, 54% aren’t clear on how pay increases or bonuses are calculated at their company.
Gen Z and millennials are actually much bolder in their approach to salary negotiations than their older colleagues, the survey notes. Nearly 60% have leveraged a potential job offer as a negotiation tactic for a higher salary at their current companies, a stark contrast to just 48% of Gen X and 29% of boomers. Younger generations are more likely to be unpredictable in their actions after accepting job offers, with 50% of Gen Z and millennials admitting to ‘ghosting’ an employer for a higher paying job opportunity elsewhere.
SALARY EXPECTATIONS
In short, compensation remains a key factor in employee retention, with 76% overall saying their compensation is sufficient to make them stay in their current role for the next 12 months. That said, 74% of millennials expect a pay raise every year in order to stay at their companies, versus 62% of boomers and 66% overall.
Approximately 40% only ever received a raise if they asked for one, but this number is higher among younger employees (55% of Gen Z and 59% of millennials) than older ones (26% of boomers).
COMPETITIVE COMPENSATION
Commenting on the survey results, Jim Link, Chief Human Resources Officer of Randstad North America, stated: “We’re seeing a few shifts in the way workers think about compensation. While salary has always been top of mind, today people are getting increasingly more strategic and assertive in their approach to climbing the pay scale – especially younger generations.
“This reality, coupled with a tight job market, requires employers to be more aware of their compensation offerings in order to stay competitive. A first step for employers is to determine where they stand in comparison to industry salary standards. There are a number of resources available to do this, including our recently released Randstad US 2020 Salary Guide.”
Click here to download a copy of the guide.
Sign up for our newsletter
