Results of a recent study suggest that employers no longer have the upper hand when it comes to discussions about compensation, with workers indicating that they feel that the booming job market is now giving them the leverage they need to ask for a bigger pay day.
Specifically, the 2016 Emerging Workforce Study found that 51 percent of those surveyed felt that the expanding job market gives them more power to negotiate a higher salary. And if those talks don’t procure the pay packet the worker was hoping for? Well, a whopping 26 percent of workers indicated that they are at least somewhat likely to look for a new job in the next 12 months, up from 18 percent last year.
The study notes that, for the most part, employers seem to recognize the importance of raising wages to retain top employees, with 74 percent stating that their companies have increased wages to remain competitive. However, 62 percent of employers who recognize the need to pay higher wages say they can’t afford to do so. In these cases, employers lean more heavily on the belief that workers value different workplace perks, such as supportive supervisors, as being important to retaining employees, which unfortunately runs counter to employees, who list financial compensation, benefits, and growth and earnings potential as the top factors influencing their potential retention.
“The growing demands across the workforce for improved wages highlight that employees are no longer willing to settle for just any career opportunity,” noted Spherion division president Sandy Mazur, adding that “not only are the job market and economy trending upward, but we are witnessing a major change in mentality with critical implications on employer-employee relationships.”