The Great Resignation Set to Continue as Pressure on Pay Mounts

The Great Resignation will continue apace in the year ahead as one in five workers say they are likely to switch to a new employer in the next 12 months, according to PwC. Their survey of 52,195 workers in 44 countries and territories is one of the largest ever surveys of the global workforce.

The survey finds that 35% are planning to ask their employer for more money in the next 12 months. Pressure on pay is highest in the tech sector where 44% of workers surveyed plan to ask for a raise and is lowest in the public sector (25%). While a pay increase is the main motivator for making a job change (71%), wanting a fulfilling job (69%) and wanting to truly be themselves at work (66%) round out the top 3 things workers are looking for. Nearly half (47%) prioritized being able to choose where they work.

Workers who are likely to look for a new employer in the next 12 months are less likely to feel satisfied with their current employer. Compared to those who have no intention of changing jobs, they are 14 percentage points less likely to find their job fulfilling, 11 percentage points less likely to feel they can truly be themselves at work, and 9 percentage points less likely to feel fairly rewarded financially.

“There is a tremendous need for business to do more to improve the skills of workers while being conscious of the risk of polarisation if opportunities to develop aren’t provided right across society. At the same time, workers are not just looking for decent pay, they want more control over how they work and they want to derive greater meaning from what they do. These are linked: by acquiring skills, workers can gain control over the work they are looking for. Leaders have to adapt to build the teams needed to successfully deal with the challenges and opportunities of today and those yet to come,“ said Bob Moritz, Global Chairman of PwC.

The survey found that 65% of workers discuss social and political issues with colleagues frequently or sometimes, with the number higher for younger workers (69%) and ethnic minorities (73%). While business leaders are sometimes nervous about people bringing these potentially polarising issues to work, the impact is a net positive. 79% of those who talk about social and political issues at work reported at least one positive consequence from that. With political and social issues alive in the workplace, the job of employers is to create a context that secures the benefits of open conversation while minimizing the negative impacts - 41% reported a negative consequence of discussions about social issues. Both numbers were significantly higher for people who consider themselves part of an ethnic minority (84% positive and 59% negative).

These discussions are happening despite little active effort on the part of organizations to help secure positive outcomes. Only 30% of employees say that their company provides support to help them work effectively with people who share different views. The survey showed that workers have a particular interest in their employer’s impact on the economy, climate, and society. Half of the workers (53%) felt it was important that their employer is transparent about their impact on the environment, two-thirds (65%) felt transparency about health and safety was critical, with transparency about the economic impact not far behind at 60%, followed by diversity and inclusion efforts at 54%.

One of the most important drivers of polarisation is skills - with large differences between workers who have highly valued skills and those who do not. The data shows that those with in-demand skills (29% of the sample feel they have skills that are in short supply in their country) are more likely to feel satisfied with their job (70% v 52%), feel listened to by their managers (63% v 38%) and have money left over after they pay their bills (56% v 44%). To close the skills gap, workers say companies are investing in the current workforce through upskilling and increasing wages. By contrast, workers are less likely to report a focus on automating, outsourcing, and recruiting.

45% of respondents said their job could not be done remotely. Of those who say their job can be done remotely, 63% say they prefer some mix of in-person and remote working - the same proportion who said they expect their employer to offer that mix for at least the next 12 months, 26% of employees would prefer full-time remote work, but only 18% say their employers are likely to adopt that model. Another 18% say that their employers are likely to require full-time in-person work, which just 11% of employees prefer.