The market for top talent has continued to be tight throughout 2019 and the beginning of 2020. Employers within the U.S. have continuously added new positions for over 110 straight months, and unemployment is at a 50-year low. As a result, companies have been fighting to appeal to high-value candidates by not only increasing wages, but also by tempting potential employees with modern benefits packages.
Unfortunately, all of that positive news hasn’t translated into a comparable rise in wages for all workers. One survey found that half of employees didn’t secure pay boosts in 2019, and of those who did, a significant number received the raises in part by finding new jobs. This has left many workers exasperated and feeling undervalued. With the high demand for quality talent and seemingly stagnant wages in some industries, many employees are reflecting on the future of their current positions.
In one study, 73% of workers said that they had compared their salary with market rates for their position, and half of those people had compared salaries with their co-workers. After analyzing their wages, nearly half of professionals feel understandably underpaid. This can be a frustrating position to be in with constant news of how wonderful the job market is.
Because of this, it isn’t uncommon for unhappy workers to look for horizontal move opportunities to raise their wages, and the risk often pays off. Those who took the leap to a new job increased their compensation on average by a full 5%. Along with that substantial growth, candidates can negotiate for desirable benefits like remote work and flexible work hours.
More than ever, workers expect to be able to work flexibly and are looking to get paid based on an amount of productivity rather than time sitting at a desk in an office. Remote work and distributed teams continue to gain popularity and have shown to be not only healthier for the employees, but also more productive for the company. When the concept of remote work was still new, many companies were wary of the consequences on productivity, assuming that working at home would lead to more distractions. Research shows that providing flexibility increases productivity dramatically. One study showed that 85% of businesses saw a rise in efficiency, and of those, 63% reported at least a 21% improvement. It is also important to note that companies also save on operational expenditure when more workers are remote.
The idea of the four-day workweek has also gained steam within the United States after similar ideas have succeeded in other countries. Similar to the concept of remote work, the trend seems to overthrow the tradition of paying an employee for a set amount of time at a desk, and instead compensates them based on work completed. While the idea seems like a radical change within the American workplace environment, early evidence suggests that it may improve the quality of life for employees, as well as productivity. Microsoft tested the idea in its Japanese subsidiary and reportedly saw an enormous boost of 40% in productivity. Along with that, workers can attest that it lessens burnout dramatically and allows them to spend more quality time with family.
While these benefits packages may not always be available, they are in high demand. Two in five workers will lose interest in a job if they are unable to negotiate beyond a salary at a new position. As much as an acceptable wage is essential to workers, comfort and flexibility have become just as vital when looking for a new job.
When reflecting on your current career and reflecting on your compensation, it is crucial to consider both wages and benefits. Are you being compensated decently but you have a minimal benefits package? Is your benefits package the only thing keeping you at your job? Regardless, remember that looking around at horizontal move potential is not only popular among workers, but recommended if you are unhappy with your current job position. Compare benefits and salaries with others in your job position by doing online research, and don’t let yourself get taken advantage of when there may be a better opportunity waiting for you. Remember, job seeking is about the quality of offers you receive, not the quantity.
