With a tight labor market and low unemployment rates holding steady, organizations are facing increasing complexity around compensating new hires versus current employees, according to the fourth-quarter Global Talent Monitor report released by Gartner Inc.
To win more of the critical talent they need, employers are offering higher salaries to lure these candidates away from their current organizations. Globally, workers expect compensation increases of 15.5% to switch companies, according to the report, 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,” said Brian Kropp, group VP of Gartner’s HR practice.
The report found also 44% of US 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 US employees indicated a high willingness to do more than is required in their jobs, 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 their current roles and increasing their discretionary effort at work, employers should consider how best to engage and retain their current workforce, according to Kropp. He recommends employers implement a robust employee value proposition that focuses on valued key attributes including career development opportunities, competitive wages and benefits packages, and work-life balance.
“Gartner data illustrates organizations that effectively deliver on their [employee value proposition] can decrease annual employee turnover by just under 70% and increase new hire commitment by nearly 30% – which has a direct impact on the company’s bottom line,” Kropp said.
Global Talent Monitor data are drawn from the larger Gartner Global Labor Market Survey that is sourced from more than 22,000 employees in 40 countries. The survey is conducted quarterly and is reflective of market conditions during the quarter preceding publication.
Source: Staffing Industry Analysts