It Is Time Companies Should Consider Pay Raise For Their Employees
The number of employees who feel that they are not paid enough for the responsibilities they shoulder, the tasks they do and the quality of their performance has been increasing. If you also think the same way, you may be right.
But unfortunately, because of the twin threats of recession and unemployment, you might have all along been afraid to take drastic steps like quitting your job and looking for another employment. Now that economists are of the opinion that the economy has turned the corner, you may think that you should consider other options available to you.
At the same time, companies are still not ready to accept that recession is completely over. They still believe that the hang-over the recession is still there. Even now, you may come across many employees who may be lamenting that they are doing two people's jobs and that they are yet to get a pay raise.
A new research has recently been conducted in USA and according to the findings of this research, the number of employees who are jettisoning their hesitation to leave the employers who do not pay enough has been increasing in the recent times. So, those companies who are reluctant to increase the pay of their employees appropriately may have to lose competent workforce.
The Talent-Shortage-Survey conducted by Manpower Group reveals that at least one company out of 10 has decided to raise the starting salaries of jobs because getting the right workers has become a major problem for them. But another survey conducted by CareerBuilder.com says that the destination is quite far off because more than 35% of the companies still feel that there are more number of workers than the number of jobs available and hence, there is no need to raise salaries.
Matt Ferguson, CEO of CareerBuilder says that those companies that are not willing to pay good salaries to competent workers may incur hidden expenses. The performance of employees may not be to the desired levels or it may be difficult to retain some of the competent workers. According to him, the job market is improving though competition in the market is still there. Due to this improved situation in the job market, workers are justifiably happy. Therefore, there seems to be a disconnect between what job-seekers expect and what employers may be willing to offer.
According to a research conducted by Glassdoor.com, another site, two out of every five American employees feel that their salaries are unfair. The experts of the site feel that this is a sizable number that may impact strategies for attracting, retaining and motivating employees.
Though companies are reluctant to accept it, recession is over. The productivity of employees has certainly started improving. At the same time, these employees are aware that their CEOs and top managers get hefty salaries and bonuses. So, they justifiably feel that they should be paid reasonably well also.
The day when employees will be making a drastic decision if they do not get the right quantum of salaries is not far off. The findings of the Glassdoor research reveal that nearly 62% of the employees surveyed categorically say that if they do not get the expected raise during the first year, they may not hesitate to look for an alternative employment.
The survey of CareerBuilder reveals that the hidden costs a company may incur may be quite substantial if they do not consider timely and appropriate pay raise to their employees. These losses may be due to the fact that good workers may leave while less skilled or less motivated employees may remain. This may result in work delays, dissatisfied customers, poor work-quality, revenue loss and so on.
Companies should learn their lessons and act on time if they do not want to lose some of their excellent workers.