Research done a few years ago, published by Bloomberg, found employees are more likely to receive a larger pay rise when they switch employers.
Here’s what the research found-
- 23% of employees are actively looking for another job. They apply for four or five jobs on average over a 4 week period.
- Employers are poaching 27% of offers to employees are unsolicited.
- People who switched jobs earned on average 4.3% more money compared to a 3% increase for those who stayed in their current position with their current employer.
- Workers are more likely to move. Leaving a current employer for a position with a new employer has increased in the last 5 years.
- Job mobility is a strong predictor of wage increases. When employers feel threatened that employees are looking for a role elsewhere they are more likely to offer those employees higher wages.
- Job mobility is a good sign forthe economy. It is a sign of dynamism, according to the research.
What this research shows is that employers are willing to offer more to secure the best staff, which puts upward pressure on wages for both current and prospective employers.
It’s also means that workers who receive an offer from a prospective employer receive the highest pay rise, whether they move or not, compared to their colleagues who don’t.
So how can you use the information this research provides to your advantage, whether you are an employer or employee?
If you’re an employee, whether you enjoy your current position or not, you have the option to seek out other employment opportunities to assess whether you are being paid market rates for your current role. Simply doing this could, at the very least, lead to being paid more by your current employer.
If you’re an employer, it is likely that a significant percentage of your staff are either looking for other work or receiving unsolicited offers from other employers. Working conditions, company culture and very importantly pay rates are your best defense against losing staff (particularly key staff).
With the current high employment rates predicted to continue it is vital for employers to ensure they stay competitive in the market in regards to employee contentment and pay.
As strong demand for talent continues, employees are more aware of their worth in the market.
This means workers who know what they’re worth and employers who offer market rates of pay will find the best balance, stability, low staff turnover and highest contentment rates.
You can keep you finger on the pulse of the market, whether you are an employee or employer, by using Find Someone or Find A Company on Connectzapp.
For employers – Find Someone (in menu) is the tool to find ‘off market’ candidates for any role. These are the candidates who are not actively looking for another role but will consider offers. There is less competition for these candidates yet their competence in a given role may be higher than your current staff. Give it a try
For employees – Find A Company (in menu) is the tool to find that elusive ‘off market’ role that’s perfect for you. Many employers will consider new staff even when they are not actively looking. There is less competition for these roles and using Find A Company is a great way to introduce your self to your preferred employers. Give it a try