BambooHR, the industry’s leading cloud-hosted human resource platform where everything works together, released a new study of 1,500 US adults examining worker sentiment around compensation and benefits. The study found that two in five salaried employees (41%) didn’t receive raises in the past year, up from 33% in 2022. Those who did received a 25% smaller raise, underscoring the economy’s impact on employee pay in the past year.
“While an uncertain job market might be keeping employees at a company, it’s clear that morale is low,” said Anita Grantham, Head of HR at BambooHR. “For the second year in a row, our study uncovered that employees feel they aren’t getting paid enough. It’s crucial for employers to understand these trends to focus on next steps to improve employee engagement and overall retention.”Â
Salary Dissatisfaction
Although only 21% of salaried workers changed employers in the last year compared to 34% in 2022 (a 38% decrease), 73% of employees admitted they would consider leaving their current job for a higher paycheck. It would take a 13.3% pay increase to tempt an employee away from their current position, down from 16.1% in 2022.
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27% of women expressed frustration with their compensation (up from 16% in 2022) compared to 15% of men (up from 11% in 2022).
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58% of employees are content or happy with their current financial compensation.
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Almost half (48%) have thought about leaving their company in the last six months to find better compensation, up from 41% who felt the same way in 2022.
Salary Transparency
With transparency laws enacted nationwide, 82% of employees now consider salary transparency essential when evaluating potential employers, up from 69% in 2022. Younger generations are also talking more candidly about pay with peers. Employers need to make clear decisions about pay philosophies and transparency levels—sharing can be equally disruptive if leaders aren’t prepared to discuss it clearly.
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Salary…
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