According to a recent Glassdoor US Employment Confidence Survey, more than one in three (35 percent) employees report they will look for a new job if they do not receive a pay raise in the next 12 months. This comes as employee optimism in the job market reaches a six year high, with nearly half (48 percent) of employees reporting confidence they can find a job matching their current experience and compensation levels in the next six months.
In addition, the survey monitors these four key indicators of employee confidence:
- Job Market Optimism/Re-hire Probability: During Q4 2014, confidence in the job market reached a new six year high, with half (48 percent) of employees reporting confidence in their ability to find a job matched to their current experience and compensation levels in the next six months. This is up 1 percentage point from last quarter. Of those unemployed but looking, job market confidence increased 10 percentage points to 43 percent since last quarter (33 percent), also a six-year high.
- Job Security: Thirteen percent of employees report concern about being laid off in the next six months, down 2 percentage points since last quarter (15 percent) and a new six-year low. Nearly one in four (23 percent) employees report concern about co-workers being laid off, up 1 percentage point since last quarter.
- Salary Expectations: Employee optimism for a pay raise remains high and steady since last quarter, with 43 percent of employees expecting a pay raise or cost-of-living increase in the next 12 months. This is up 1 percentage point from last year (Q4 2013), and up 4 percentage points from two years ago (Q4 2012). Thirty-seven percent do not expect a pay raise and 19 percent don’t know.
- Business Outlook Optimism: More employees expect their company’s business outlook to improve in the next six months (43 percent), up 4 percentage points since last quarter. Half (49 percent) believe their company’s business outlook will remain the same, while 8 percent believe it will get worse. Men are more optimistic (48 percent) than women (39 percent) that business will improve in the next six months.
Calls into CAI definitely reflect the sentiment expressed in this survey. Movement among professional staff, including HR professionals, has definitely accelerated over the last six months. It's a good time to take pause and reflect on the quality of your "people practices" including such things as your culture, total rewards systems, talent management initiatives, and the like before your organization loses key talent. Call Rick Washburn at the association office for help in thinking through these issues.
To read the survey in its entirety, go to http://www.glassdoor.com/press/wp-content/files_mf/gdecsq414surveysupplement.pdf. The Glassdoor® quarterly Employment Confidence Survey¹, conducted online by Harris Poll in December among more than 2,000 U.S. adults (ages 18+), monitors four key indicators of employee confidence: job market optimism/re-hire probability, job security, salary expectations and business outlook optimism. For purposes of reporting, employees refers to those employed full- or part-time unless otherwise indicated.