The Great Resignation era we’re in now has been fueled largely by a workforce driven to turn away from jobs that undervalued, undercut and undercut them. According to a new report employers can no longer afford to just replace the workers that quit—they have to address why they quit in the first place.
A new survey by Payscale found that 66% of employers plan to address pay equity this year, a 20% increase over last year. The 2022 Compensation Best Practices Survey gathered responses from November 2021 to January 2022 from 5,578 respondents. The responses uncovered insights from management level employers and employees that highlighted their thoughts on pay equity.
The report showed that more than half plan to conduct either a gender- or race-based pay equity analysis specifically — the first time this has been a majority in the 13-year history of this report. Of the 5,578 organizations surveyed, only 36% of respondents knew their gender pay gap, and only 29% knew their racial pay gap.
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Survey findings also shed light on how current unemployment rates affect the future of work: Despite unemployment being high in 2021 compared to recent years, 76 percent of organizations say they experienced labor shortages or difficulty attracting talent in 2021.
Key findings include: 76% of organizations have experienced labor shortages or difficulty attracting talent in 2021. 24% was the average turnover in 2021; 36 percent of which was voluntary turnover. 49% of organizations say that voluntary turnover has increased compared to previous years. 75% of organizations are not looking to replace workers with automation to solve shortages.
Additionally, the survey addresses important conversations about pay increases in general as well. There have been a dramatic increase in the percentage of organizations (92 percent) participating in giving pay increases in 2022, up from 85 percent in 2021 and 67 percent during COVID-19 in 2020. The amount that base pay will increase is also looking to rise compared to previous years. However, it may not be enough to combat inflation.
Nearly 100& of orgs are giving base pay increases in 2022. While 44% of orgs are planning to give pay increases higher than 3 percent — a 13 percent increase over the average the last six years. 33% of orgs that cut or froze pay in 2020 did not make up for it and don’t plan to. 44% of orgs say that pay is the reason they are losing talent. 85% of orgs are worried about inflation but only 29 percent increased their budget.
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