In 1977, the song “Take This Job And Show It” rose to number one on the country’s music charts and remained there for two weeks.
Today’s workers may not know the song, but many of them may be familiar with that emotion. And companies are trying not to let their employees play their own variations on that theme.
‘Mission and Culture’
Microsoft (MSFT) – Receive Microsoft Corporation Report Workers have recently said it wants to increase compensation. “People come and stay at Microsoft because of our mission and culture, they find the money for their work, the people they work with and how they are rewarded,” said a spokesman for the software giant.
“This increased investment in our global compensation reflects an ongoing commitment to provide a highly competitive experience for our employees,” the spokesman said.
And Microsoft is not alone in raising employee compensation.
Amazon (AMZN) – Amazon.com, Inc. Get the report Maximum base pay increases for corporate and technical staff, and Google Parent Alphabet (GOOGL) – Alphabet Inc. Get a Class A report It is overhauling its performance appraisal process, implementing changes that will lead to pay rises.
So what’s going on here?
Well, things are getting more expensive. U.S. inflation eased slightly from its fastest pace in four decades last month, but core consumer price pressures continue to mount.
A survey by human resources consultancy Robert Huff last month found that 60% of technology employers are raising starting salaries to attract and hire skilled candidates, with 54% offering salary increases or bonuses for current team members.
Voluntary departure rate
Ryan Sutton, Robert Huff’s district president, said, “Wages in technology are going up, especially for positions with extremely low unemployment rates.” Inflation and market turmoil have only stabilized as workers and job seekers are going to be weighed heavier. “
Sutton said the rate of voluntary departure is extremely high – which means technology people who have quit their jobs in the past may be more likely to do so again in order to increase their pay.
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“Technology companies need to be aware of this and look at their pay structure and adjust to keep it,” he said.
Tessa West, an associate professor of psychology at New York University, believes there is more to the story than just the rising inflation rate.
“Companies are now bleeding employees faster than ever before – and not just the top talent, but all the talent,” he said. “It used to be that you had to throw money at your top talents to keep them happy, but now you have to throw money at all the talents.”
West says companies are growing because employee demand is high and they recognize their talents, which is a good reason for people to pay more.
“But I think the more compelling trend that underlies great resignations – and the” great scramble “to hold people back, is that people aren’t as familiar with the companies they work with as they used to be,” he said. “It was like you would work for a company for thirty years, and stay there until it’s time to get a pension. You’re married to your company.”
Side hostels and ghosting
West says it’s not that people are changing jobs frequently now, but that many who are working for a company are in a hurry.
He cited a survey by Resume Builder that found that 69% of full-time people have at least one side job.
“And we can see that this ‘you’re not my boss’ pattern is evolving very quickly in the hiring process,” West said. “Spooky – Not seeing or ignoring callbacks on the first day of employment is very common. In a survey of 900 employers, 83% were haunted by new recruits.”
West says there are plenty of signs that people are not committed to their company or their career path and are not feeling strongly identified with the places where they work.
“And they want to live without that inner motivation,” he said. We need to encourage them to take care of themselves by throwing money at them. “
West says the psychological reasons why companies are leaving people need to be closely monitored – commitment and identity with a company are some of the strongest predictions of staying in a job – “instead of just throwing money at the problem and catching talent problem or just an inflation problem.”