Pay is losing importance as a decisive factor for workers, according to new research by leading member-based advisory company CEB.
Overall, compensation remains the single most important point considered by workers globally when looking for a new job but it was given priority by less than half of respondents (45.9 percent). This figure is significantly lower in some countries such as the UK where only 23.6 percent of respondents said compensation was the biggest single factor when assessing a new job opportunity. Internationally, dissatisfaction with pay comes second to lack of career opportunity as a reason for leaving. Only 35.5 percent of global workers leave their job because they are unhappy about their compensation package, compared to 41.6 percent who seek better career opportunities. In the UK, compensation is only the 8th reason for leaving (key for 24.7 percent of respondents), behind factors such as future career opportunity, people management and respect.
The expectations for switching premiums – the compensation uplift expected with a new job – are also on a downward trend despite the global economy and pay outlook recovering. The average employee today is expecting a 14.8 percent payrise – compared with 16.8 percent in 2011. The reasons why pay is in relative decline as a differentiating factor are twofold. Firstly, after a prolonged period of austerity, businesses are so focused on cost-control that there is very little room for manoeuvre on compensation and pay differences between companies are muted.
Secondly, millennials – a growing presence in the workforce – believe they will work all their lives in stark contrast with previous generations who looked forward to retirement. The mindset of the younger generation means they can afford to focus less on earning enough for a comfortable retirement and more on doing a job that is meaningful to them – since there will be no retirement to pursue interests and hobbies full-time. Commenting on the findings, CEB executive director Brian Kropp, said: “Workers still want money – and always will – but this research demonstrates clearly that people are not just chasing the biggest pay cheque. Today’s employees crave opportunity to develop, to shine and to showcase their talents. At a time when few companies can afford dramatic salary rises, the focus for many will be on getting the non-financial aspect right.
Even those with the biggest and most flexible recruitment budgets have to adapt to the new environment. Just throwing money at talent management is no guarantee of getting the best people in and keeping them – stimulating work and a good manager are every bit, and often more important.” These statistics are based on recent research by member-based advisory company CEB, highlighting the trends from the firm’s most recent Global Labour Market Survey of approximately 18,000 employees. Employers must adapt to harness the great untapped resource – their ageing workforce
They bring experience, knowledge and loyalty to a business and yet almost half (46 percent) of employers think that an employee’s work performance declines with age. New research* from AXA PPP healthcare has shown that, while employers value their older workers, with most (59 percent) considering older workers an integral part of their business, they are no longer offering development opportunities to maximise the business benefits older employees can bring to the workforce. Twenty-seven percent of over-50s said that they hadn’t had an opportunity to learn new things and develop in the last year, compared with 14 percent of under-50s. In addition, only one in four employees over the age of 50 (25 percent) had been on a training course in the last six months, compared with nearly a third (29 percent) of under-50s.** This demonstrates a misconception with employers, with almost half (46 percent) thinking older workers were reluctant to take part in training.
Twenty-seven percent of over-50s had had a meeting with their manager to set or review their objectives in the last six months – not dissimilar to under-50s at 28 percent. However, compared with under-50s, only half the number of over-50s had had a conversation with their line manager about their career in the last six months (29 percent and 15 percent, respectively).
James Freeston, Marketing Director, AXA PPP healthcare commented: “There are many positives of employing an ageing workforce – one being that a third of employers consider older workers to be more concerned with the business’s success than with personal career progression. “As the workforce continues to age it is no longer acceptable to switch off training and development opportunities for those reaching a certain age. Employers need to adapt their resources now to engage both younger and older workers through training and development programmes, and maximise the business benefit of their ageing population.
“Our research shows that employees throughout the workforce recognise and value the benefits that both their younger and older colleagues bring to the business. Employers can help to bridge the age divide in their organisations by introducing structured mentoring programmes, such as flip mentoring, so that younger and older workers can both develop their skills and knowledge and, in turn, help to create a positive, collaborative culture and improve performance.”
https://www.axappphealthcare.co.uk
*Online survey of 250 employers (both SMEs and large corporates) undertaken in September by market researcher OnePoll.
**Online survey of 2000 employees (both SMEs and large corporates) in July/August 2014 by market researcher OnePoll.
