Dive Brief:
- Workers across the globe are concerned about pay, according to research published Wednesday by ADP Research Institute: Six out of 10 (61%) of the more than 32,000 people surveyed worldwide said salary is the most important factor in a job.
- Employees also have high expectations about raises, the findings revealed. Although most received a raise last year with increases averaging 6.4%, workers still believe they’re underpaid and said they expect raises of 8% to 10% in 2023. In North America, about half of workers surveyed (54% in Canada and 50% in the U.S.) said they’re underpaid; employees in the U.S. received raises that were higher on average than their counterparts in Canada, however, and they expect higher increases this year (7% versus 5%).
- For the most part, workers in North America said they’re satisfied with the flexibility they have over where and when they work. However, “the size and prevalence of pay raises, improvement in areas like job security and investment in skills training” are at the front of their minds, the report said.
Dive Insight:
As the cost of living soars and workers feel their incomes pinched, it may be no surprise that pay is a priority.
Yet, if employers aren’t in a position to award salary increases, workers responding to the survey said they’d accept other types of compensation, such as a one-off payment (37%), additional paid time off (35%), or grocery or shopping vouchers (32%).
The findings align with what human resource professionals reported in HR Dive’s 2023 Identity of HR survey. To lure job candidates and address concerns about fair pay and financial stability and security, HR professionals have said they’re focusing on a total rewards package as part of their talent acquisition strategy.
Besides pay raises and other forms of compensation, employers can nurture employee loyalty and motivation by offering opportunities for career progression, helping to ensure employees enjoy their work and by providing flexible working hours, which employees told ADP researchers were the second, third and fourth most important factors in a job.
Some employers have met these requests. One-third of respondents said they have complete flexibility over where they work, meaning they can work from the workplace or at home, as they choose. More than a quarter (27%) said they have to work a certain amount in the workplace each week, but for the rest of the week, they can work at home.
These arrangements can benefit employees in a variety of ways. For those who work a hybrid style, time saved on commuting has led to healthier habits, such as having more time for exercising, cooking healthy meals and sleeping, according to a recent report from International Workplace Group.
