This week, 24 Seven is releasing our annual research study of the hiring market. Based on input from over 2000 respondents across a variety of industries, organizational levels, and job functions, this study provides information to help job seekers and hiring managers alike navigate the most candidate-friendly employment market in decades.
What about money?
We found half of the workers surveyed actively planning a job change in the coming year, and another 14% ripe for poaching. Notable is that for the first time since 24 Seven began tracking talent mobility, a bigger paycheck, the perennial number one reason to pursue a new job, was bumped from the top slot by ‘better advancement and growth opportunity’ – albeit more money was a very close second.
Competition is at an all-time high
Hiring managers participating in the research indicated that not only is competition for talent at an all-time high, but candidates are more discerning than ever. Employees surveyed know that the odds are very much in their favor to land a comparable or better job in the current hiring environment. Survey participants in a position to hire admit they are most beleaguered by the struggle to source and attract talent, and by retaining employees and developing succession plans. Overall, hiring decision-makers do not believe their organizations have improved compensation/benefits to retain employees.
Raising the bar
Fifty-seven percent of full-time non-executive employees reported a raise in the past year, averaging 8%. Those in new jobs reported a higher average hike of 13%, confirming the long-held belief that making a job switch is often the fastest way to a bigger paycheck. While compensation did rise for most survey takers, the majority of respondents felt that their benefits had worsened and will continue to do so in the future. Preparation for retirement is an even greater employee concern. Companies not raising salaries or improving benefits run the risk of talent flight, as generous pay and benefits continue to make the list of primary reasons to switch jobs.
Additional insights from this year’s study include:
- Marketing/Digital Marketing, Sales, and Creative professionals are most in demand
- Just 5 in 10 employees are loyal to their current employer, with even less happy at their current job or feeling secure in it
- 80% of employees are confident about landing a comparable or better job in this talent-scarce environment, and more than half surveyed are actively planning a job switch
- 1/3 of hiring managers say that the frequency of negotiations to win over candidates has increased
- About 6 in 10 employees had a pay raise last year, averaging 8%. Employees expect raises to be around 6% in the coming year. Hiring managers predict future raises to average 4.6%.
- Succession planning along with training and development are among the most challenging talent management tasks faced by companies
- While freelance workers surveyed estimate that they earn an average of 26% more than full-time employees in a similar role, 7 in 10 independent workers say they’d prefer to transition to a full-time position at a company
- One in five hiring managers admit their company’s candidate experience and employer branding are hamstringing their talent acquisition efforts
- Almost 4 in 10 employees say the workplace reality is worse than expectations set by employer branding
As always with our annual study, our goal is to uncover trends that companies can use to improve their employment offers, evolve their corporate culture, refine their employment brand, and create a workplace that attracts the very best talent.