Changing Jobs During the Great Resignation Proves Valuable for US Workers
September 20, 2022
Workers in the United States who changed jobs during the Great Resignation saw a median increase in compensation of 16.1%. That’s over twice the median compensation increase in annual pay for those who stayed in their former jobs, which registered at about a 7.6% increase. This data is from a recently released report from payroll services provider ADP.
While workers who stayed at their company didn’t typically receive as high of a raise as their Great Resignation counterparts, these raises varied widely based on industry. For example, leisure and hospitality workers received the greatest salary bump, at 12.1%. Additionally, the data showed that the larger the company, the greater the raise for employees who stuck around with their previous employer. This underscores the difficulty many small businesses have in competing for talent against their larger, more well-funded competitors.
The latest Bureau of Labor Statistics jobs report for August, released last week, indicates that while the labor market tightness may be slowly easing, the Great Resignation is still ongoing.
Other data from professional networking site LinkedIn show their members reporting switching jobs at a rate 37.6% higher this year than in 2021. And additional data from Applicant Tracking technology provider Lever found that 40% of employees are planning to quit by the end of 2022, with Gen Z employees leading the way with 65% of them planning to leave for a new role.
The ongoing Great Resignation effects, and increased job changing has proven to be a way for employees to compete with the increasing cost of living. Forty-year high inflation rates have made everyday necessities like gas, food, and housing more difficult to afford, with inflation rates generally surpassing the salary increases some workers have been receiving. Considering that Gen Z and millennials have reportedly been hit hardest by inflation, it’s no wonder that younger generations are more eager to take part in the Great Resignation, and benefit from the more than double compensation increases that many of them receive from their new employers.
While CEOs and business owners are desperate for the ongoing Great Resignation to abate, if not end, it still seems likely that for now, US workers will take advantage of their high value and demand and leverage the tight labor market for their benefit.
To listen to a version of this post in audio format, please visit The Workplace Minute on hrhappyhour.net.
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