Workspan Daily |

Workers Expect 15% Pay Increase to Leave Job


The latest jobs report revealed that U.S. unemployment fell to 3.8% , which means the labor market remains tight. Thus, organizations are facing increasing complexity around compensating new hires versus current employees.

Gartner’s 4Q18 Global Talent Monitor report, which is sourced from more than 22,000 employees in 40 countries, shows that compensation remains a top driver to attract and retain talent in the U.S. In an effort to win more of the critical talent they need, employers are offering higher salaries to lure these candidates away from their current organizations.

“Compensation has become tricky for many companies who are trying to both attract new talent, but also keep their best workers in-seat,” said Brian Kropp, group vice president of Gartner’s HR practice. “Globally, workers expect significant compensation increases of 15.5% to switch companies, and the annual wage increases that companies currently offer will never match that. The result is a new wage gap that is forming where new employees are paid more, sometimes significantly more, than tenured employees.”

Data from the 4Q18 Global Talent Monitor reflects that more U.S. employees plan to remain at their current organization and they are doing more than is required in their jobs. 44% of U.S. workers intend to stay in their current roles, a 4% increase from last quarter and more than 11% higher than the global average.

In addition, almost 19% of U.S. employees indicated a high willingness to go above and beyond at work, with 78% of these workers expressing a high or somewhat high intent to stay at their current organizations.

“With more employees planning to stay in current roles, and increasing their discretionary effort at work, employers should consider how best to engage and retain their current workforce,” Kropp said.

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