The Great Resignation Continues Due to Increasing Pressure on Wages

Although there have been some speculations that the trend of mass resignations is waning, it appears that the so-called Great Resignation will continue rapidly into the next year, as one in five workers says they are likely to change employers in the next 12 months. This is at least what the new results of PwC’s Global Workforce Hopes and Fears survey, one of the largest studies of the global workforce ever conducted, involving 52,195 workers in 44 countries, show.

Workers Want Higher Salaries

According to the survey, 35 percent of respondents plan to ask their employer for a raise in the next 12 months, with the highest pressure in the technology sector where 44 percent of respondents want a raise compared to just 25 percent in the public sector.

Additionally, a salary increase is the main motivation for changing jobs (71 percent), the desire for fulfilling work (69 percent), and the desire of respondents to be truly themselves at work (66 percent) make up the three main things workers are looking for. Nearly half of the respondents (47 percent) prioritized the ability to choose where they work.

For workers likely to seek a new employer in the next 12 months, it is less likely that they will be satisfied with their current employer.

– Companies are expected to make extraordinary efforts to improve workers’ skills. They must also be aware of the risks of polarization if development opportunities are not equal for the entire society. At the same time, workers are not just looking for a decent salary; they want greater control over how they work and want to find greater meaning in what they do. These two are connected: by acquiring skills, workers can actually gain control over the jobs they seek. Leaders must adapt to build the teams necessary to successfully face the challenges and opportunities of today, as well as those that are yet to come – reported Bob Moritz, global chairman of PwC.

The Importance of Social Issues is Growing

The survey also showed that 65 percent of workers often or sometimes discuss social and political issues with colleagues, with this number being higher among younger workers (69 percent) and members of ethnic minorities (73 percent). Although business leaders are sometimes nervous about people discussing potentially polarizing issues at work, the effect is positive.

Thus, 79 percent of those who talk about social and political issues at work reported at least one positive consequence of this. Given the presence of political and social issues in the workplace, employers should create a context that highlights the benefits of open discussion while minimizing negative effects – 41 percent reported negative consequences from discussions about social issues. Both numbers were significantly higher among those who consider themselves members of an ethnic minority (84 percent reported positive, and 59 percent negative consequences).

These topics are discussed despite the weak active efforts of organizations to help ensure positive outcomes. Only 30 percent of employees say their company provides support that helps them work effectively with people they disagree with.

The survey showed that workers are particularly interested in the impact their employer has on the economy, climate, and society. Half of the workers (53 percent) felt it was important for their employer to be transparent about its impact on the environment, two-thirds (65 percent) felt that transparency about health and safety is crucial, closely followed by transparency about economic impact at 60 percent, and then activities related to diversity and inclusion at 54 percent.

– A workforce characterized by diversity will inevitably bring differences in opinions on major social issues to their workplaces. Leaders should ensure that these discussions benefit teams, rather than serve as a cause for division. The role of employers is not to tell workers what to think, but to give them a voice, choice, and a safe environment to exchange feelings, listen, and understand how these issues affect their colleagues. Workers, especially younger individuals and members of ethnic minorities, feel the benefit of engaging in discussions with respect and tolerance – stated Bhushan Sethi, co-leader of PwC’s global people and organization services.

Women Are Less Likely to Ask for a Raise

According to the survey, women are 7 percent less likely to state that they have a fair salary compared to men, and thus also less likely to ask for a raise. They are also less likely to request a promotion (by 8 percent) and are more likely to have their requests ignored. Namely, 8 percentage points fewer women than men feel that their superiors value their opinions.

– It is detrimental to society and business when women are not provided with the same opportunities as men regarding the development of their skills and careers. One of the quickest ways to strengthen the workforce is to ensure that women are not left out, which means adjusting the culture, systems, and structures that can lead to women being at a disadvantage – emphasized Pete Brown, co-leader of PwC’s global people and organization services.

There were also significant differences among generations, with Generation Z workers being less satisfied with their jobs and having concerns that technology will replace their roles in the next three years being twice as high as that of baby boomers.

One of the most significant influences on polarization is skills – there are large differences between workers with high-value skills compared to those who do not have them. Data shows that individuals with in-demand skills (29 percent of the sample believe they have skills that are lacking in their country) are more likely to feel satisfied with their jobs (70 percent compared to 52 percent), more likely to feel that managers value their opinions (63 percent compared to 38 percent), and have money left over after paying their bills (56 percent compared to 44 percent).

To reduce skill disparities, workers say that companies should invest in the existing workforce through upskilling and increasing wages. In comparison, fewer surveyed workers focused on automation, outsourcing, and hiring.

– In a labor market where the supply of workers is limited, it is even more important for organizations to adopt an approach that prioritizes people with the support of technology. This means investing in both digital transformation and skills. Investment should be guided by the principle of fairness, with an emphasis on enhancing the capabilities of qualified employees, ensuring access for those lacking skills, and automation that frees people for jobs that only humans can do.

This is equally about acquiring skills as it is about hiring graduates and requires a commitment to continuous improvement. Targeted investment in people with diverse skills is good for companies, individuals, and society, as it prevents the entrenchment of inequality – said Carol Stubbings, global leader of tax and legal services at PwC.