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News

Employee influence grows: 43% set to quit jobs for better pay, career opportunities and flexibility

11.05.2022
Company: EY

  • EY 2022 Work Reimagined Survey shows employees now have greater influence over employment terms; 42% of employees say pay increases are needed to address staff turnover, while only 18% of employers agree
  • 22% of employers say they want employees to come back to the office five days a week; 80% of employees want to work remotely at least two days a week
  • 32% of employers have succeeded in boosting productivity and culture, through hybrid work and investing in amenities and workplace technology 

Employees around the world now hold more sway in the global job market, with two-fifths (43%) of respondents saying they are likely to quit in the next 12 months – driven mostly by a desire for higher total pay, better career opportunities and flexibility amid rising inflation, a shrinking labor market and an increase in jobs offering flexible working – according to the EY 2022 Work Reimagined Survey.

The survey – one of the largest of its kind – canvassed the views of more than 1,500 business leaders and more than 17,000 employees across 22 countries and 26 industry sectors. It shows that, as many countries emerge from the COVID-19 pandemic, employees have gained significant influence over their employers and that their “wish list” from potential employers is changing.  

Search for increased pay overtakes desire for flexibility

The main motivation for employees seeking new jobs, according to the survey, is now a desire for higher pay. With record inflation, in many countries around the world, more than a third of those searching for new roles (35%) say that a salary increase is their main objective, and 25% say they are looking for career growth. Forty-two percent of employees surveyed say that pay increases are the key to addressing staff turnover – but only 18% of employers agree.

Flexible working arrangements – which were by far the biggest factors leading to employee moves according to last year’s survey – are now less of a driver given that most are already working for companies that offer flexibility in some form. Only 19% are seeking remote-work flexibility from a new job, while 17% say that well-being programs would prompt them to move.

Looking at the various age groups across the countries surveyed, Gen Z employees and millennials in the US are the most likely to quit their jobs this year (53%), while across the sectors, it is those with technology and hardware jobs (60%) that are most eager to leave. 

Liz Fealy, EY Global People Advisory Services Deputy Leader and Workforce Advisory Leader, says:

“This latest survey shows that employees around the world are feeling empowered to leave jobs if their expectations are not met.  As employers have increasingly provided flexible work approaches, higher pay is now the biggest motivation for changing jobs, particularly given rising inflation and available unfilled roles.”  

Shifting views on culture and productivity

Interestingly, the desire amongst employees to seek out new roles persists even though they hold relatively upbeat views about company culture. The number of employees who believe their organization’s culture has improved, has risen from 48% to 61% since the start of the COVID-19 pandemic. At the same time, employers’ confidence in their own company culture has dropped from 77% to 57%. Additionally, while employees believe new ways of working have increased productivity, companies’ confidence in their own productivity is being eroded by increased turnover.

Growing skills and talent gaps

Fifty-eight percent of employer respondents agree it is important to have a strategy in place to match talent and skills to future business needs; and 74% say that they are prepared to hire employees from other countries and allow them to work from anywhere if their skills are critical or scarce. Slightly more than a fifth of employer respondents (21%) believe improving opportunities to build skills will help address turnover.

Pressure to return to the office

Despite the continuing shift towards flexible working models, 22% of employer respondents say they want employees to come back to the office five days a week. Although reluctance to work remotely among employees has fallen (from 34% to 20%) most employees (80%) say they want to work remotely at least two days per week.

Boost to culture and productivity from new ways of working

The survey reveals that a large population of “optimist” employers (32%) are managing to improve both culture and productivity. It shows that they are achieving this by ensuring that their leaders have a shared understanding of company issues, external practices and strategies (94%). Other factors cited by this group of businesses as drivers of their success include hybrid work (90%), investing in on-site amenities (39%), enhancing workplace technology (45%) and giving employees more empowerment and autonomy (44%). By way of contrast, other businesses are continuing to watch and wait, or are only taking selective action.

Roselyn Feinsod, EY Work Reimagined Leader, says:

“We are seeing a top third of companies successfully navigating these divergent positions on pay, career opportunities and flexibility. They have moved from ‘resistance’ to ‘renaissance’ and that’s a win-win for their companies and their workforce. Organizations have to work to retain their employees, instill trust and provide a package that takes into account total pay, career path and flexibility to balance market concerns and risks.”

-ends-

Notes to editors:

About EY

EY exists to build a better working world, helping create long-term value for clients, people and society and build trust in the capital markets.

Enabled by data and technology, diverse EY teams in over 150 countries provide trust through assurance and help clients grow, transform and operate.

Working across assurance, consulting, law, strategy, tax and transactions, EY teams ask better questions to find new answers for the complex issues facing our world today.

EY refers to the global organization, and may refer to one or more, of the member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients. Information about how EY collects and uses personal data and a description of the rights individuals have under data protection legislation are available via ey.com/privacy. EY member firms do not practice law where prohibited by local laws. For more information about our organization, please visit ey.com.

This news release has been issued by EYGM Limited, a member of the global EY organization that also does not provide any services to clients.

About the survey

The EY 2022 Work Reimagined Survey is the latest and largest in a series of surveys comparing employer and employee perceptions since 2020. It compares the views of thousands of respondents, and the insights are meant to help businesses to create a sustainable workforce that helps them drive business growth, meet customer needs, and generate long-term value.

The Survey was conducted January through March 2022 and received responses from 17,498 employees and 1,575 employers from 22 countries across 26 industries.

The survey was conducted using a third-party panel and targeted employers with a range of 500 to 15,000 employees.

Survey data is segmented by 88 different personal and work-related demographics and preferences. Participant responses ranged from 21 years to 65 years plus, with responses from senior leaders and individuals at all different functions.

For a one-hour CPE credited results webcast on Tuesday, May 17, please visit and register here: Work reimagined: How to prepare for 'renaissance and recommitment' | EY - Global

Please visit EY.com for additional insights.

 

Tags: Human Resources |

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