NEW YORK (MainStreet) — While many employers may think their staffs are happy, more than one out of three employees may be willing to walk if they don’t like what they hear during their review.
With good job growth expected this year, 35% of employees say they will look for a new job if they do not receive a pay raise in the next 12 months, according to a new survey from jobs and career marketplace Glassdoor.
The attitude seems to come as optimism about an improving job market is rising — reaching a new survey high, with 48% of employees saying they are confident they can find a job matching their current experience and compensation levels in the next six months.
“The job market is making a strong recovery and with that comes the reckoning of pay inequities and an increased awareness of salary transparency,” said Rusty Rueff, a career and workplace expert at Glassdoor. “Employees are making it known that they expect to get paid more in 2015."
“In fact, if they don’t, they will jump ship and find a new opportunity," Rueff added. "Therefore, it’s time for employers to dust off the playbook from the economic growth years and pay attention to compensation practices that retain talent."
With confidence in the job market high, employees are expecting to benefit — with 43 percent reporting they expect a pay raise in the next 12 months.
Perhaps the good news for employers is workers seemingly do not expect to break the company’s bank. Just under half of those expecting a raise in the next year expect it to be between just 3 and 5 percent. Although, some are expecting much more, with 4% saying they expect a raise between 50 and 100%.
Expectations do differ slightly between the sexes, with more than half the men — 52% —expecting a raise between 3 and 5%, while only 45% of women expect the same. Also, 62% of employees say they do not believe men and women are paid equally. Not surprising, a larger majority of women — 75% — do not believe men and women are paid equally, compared with only half of men.
“It’s also time for employers to recognize and address the fact that most employees still do not believe men and women are paid equally,” Rueff said.
“Overall, it is a time of reckoning; one in which employers should use the start of the new year as an opportunity to reevaluate internal pay structure, fix pay inequalities that exist, and be transparent with employees about how compensation and pay raises are determined," Rueff added. "Employers that do this well will reap positive recruiting and retention rewards, and those that don’t will put themselves at higher talent retention risks.”
The survey — which has been released for the last six years — also reveals workers are feeling a little more secure in their jobs, with only 13% of employees reporting concern about being laid off in the next six months. That number is down 2% since last quarter and is a new survey low. However, nearly a quarter of employees report concern about co-workers being laid off — a percentage point increase since last quarter.
Employees also are expecting a better near-term future for the companies, with 43% saying they expect better outlooks from their employer in the next six months, up 4 percentage points since last quarter. And nearly half of employees surveyed believe their company’s business outlook will remain the same, while only 8% believe outlooks will worsen.
--Written by Chris Metinko for MainStreet