…Three in five workers looking for new job, study finds
Research has revealed that at least three in five workers are looking for a new job, as the cost of living forces people to seek out new roles with higher wages.
The study found out that the crisis is pushing employees to seek roles with higher wages rather than waiting for pay reviews.
A survey of 832 candidates, carried out by Aspire, found 60.8 per cent of workers were currently looking for another position, with almost half (49 per cent) reporting doing so specifically because of the cost of living.
The poll revealed that more than two-thirds (69.4 per cent) of prospective candidates said they were likely to be paid more if they moved jobs, rather than staying in their existing role and waiting for a pay review (10.1 per cent).
More than a third (39.7 per cent) also said they saw the cost of living crisis as the biggest external factor affecting the jobs market.
Among those considering quitting their job, more than a third (35 per cent) said they were looking to move for better pay and benefits, the most common reason cited.
The survey suggested that employers were not doing enough to support the workforce with cost of living. According to the survey, half of employees will be forced to find other ways to make money if businesses fail to increase financial support amid the crisis.
Meanwhile, three-quarters (79 per cent) of those surveyed said that working from home would lead to benefits like saving money on commuting and 47 per cent said it would save them money on lunch at work.
Commenting on the recent report from Aspire, a senior performance and reward adviser for the Chartered Institute of Personnel Development (CIPD), Charles Cotton, said it was not surprising that so many people were looking to change jobs to earn more amid the cost of living crisis.
But, he warned, “this comes at a time when many employers are also facing spiralling costs” and wages are “not the only thing people are looking at when considering a move.”
To better attract or retain staff, he suggested Human Resource (HR) teams help their organisations create a strong employer value proposition and then effectively communicate it.
“For example, this proposition can include such existing or new elements as flexible working, staff development, career progression opportunities, being listened to, fair pay, interesting work or even an inspiring mission,” he explained.
A HR advice and consultancy director, Kate Palmer, agreed, warning that widespread resignations mean employers are competing to attract new talent, “while juggling their existing team members to ensure they don’t lose any more key personnel.”
As a result, ”the power has somewhat shifted from the employer that is recruiting, to the employee who is job hunting,” she explained.
Not only is it difficult for some businesses to keep up with market offerings, Palmer also said “employers that are unable to keep up with employee expectations may experience a reduction in motivation.”
According to her, “It is important for employers to re-evaluate their people strategy and look to improve motivation and satisfaction in other ways. HR professionals consider their firm’s training and development opportunities, as well as benefits such as free bonus schemes.”
Competitive salaries was an issue also observed by managing director of Lodge Court, Ian Moore, who warned that many businesses are still feeling the pains of the pandemic, so might not have the budget available to accommodate salary increases.
He said: “As an HR within such a business, there are several things you can do to keep your employees happy, such as offering more flexible working arrangements, being more transparent about what you can offer in terms of pay increases and promotions, as well as aligning performance targets to these goals and training your managers to provide better support and mentoring to their direct reports,” he suggested.
Managing Director, EMEA, Ian McVey, added that an increasingly competitive labour market, ongoing economic uncertainty and the rising cost of living would all make it more likely that employees will leave a company if their remuneration package is not up to scratch.