The number of employees who are planning to stay with their employer has increased to 68 percent, compared to 64 percent last year–but still remains below 2021 levels of 72 percent, according to recent research from Mercer. The 2023-2024 Inside Employees’ Minds Survey found that pay and benefits continue to be the top reason employees are attracted to an organization—and the top reason they stay.
Over the last year, Mercer found that employers delivered the largest pay increases since the 2008 financial crisis, while also making significant investments in total rewards, which has contributed to higher satisfaction with compensation, benefits, and career opportunities this year, as well as a greater sense of work-life balance and belonging. The study also found pay transparency has benefits—employees who believe they are paid fairly were twice as likely to have been provided with pay data from their employer and were also 85 percent more engaged and 62 percent more committed to their organization.
Financial security. Employees are significantly more concerned about personal debt than they were in 2021, and it is the number two concern of lower-income employees (those making less than $60k per year). Additionally, more than half of employees across all pay levels report reducing their discretionary spending (51 percent), and another 37 percent report they have reduced savings or tapped into their current savings due to continued high inflation.
Another financial concern amongst employees involves health care affordability. Mercer found that 25 percent of employees say they cannot afford the health care they need, and that number increases to half (49 percent) at the lowest income levels (those making less than $30K per year).
Long-term financial security, focused on the ability to retire, remains employees’ number two concern overall, for two years in a row. Retirement benefits are among the top three reasons employees stay with their organization, behind only pay and health care benefits.
Wellness. Outside of financial security, ‘workload and life balance’ is a leading concern for employees. Employees again ranked mental health among their top five concerns in the survey. Mental health worries are more pronounced among young employees, LGBTQ+, Black women, people with disabilities, and the lowest earners.
Employees say more flexible and more balanced work will help support their mental health and ease burnout. The top three benefits or actions employees report will help them the most are more time off, reduced workload, and more resources.
Remote work. According to Mercer, a substantial portion of employees (38 percent) still prefer to work fully remotely, slightly less than last year’s 42 percent. Hybrid employees were found to be the most engaged and satisfied across a number of dimensions with those who worked on-site four days a week reporting the most positive experiences of any group. This group feels more energized, fulfilled, and appreciated, as well as less exhausted, frustrated, and under-utilized than any other work arrangement group.
From WCI's HR Answers Now ©2023 CCH Incorporated and its affiliates. All rights reserved.
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