Workers Demanding Better Benefits, More Off-site Work Time
With the unemployment rate low, workers are demanding better benefits and pay plus more flexibility, including options to work part of the time remotely.
And they’re getting what they’re asking for.
Workers have the upper hand
Why are workers suddenly in control of the workplace? One statistic says it all: The unemployment rate is at historic lows (about 3.7%, which is below the 4% “full employment” benchmark). Good workers are hard to find and employees and their bosses know that. Employers are having to compete for workers. Aware of this leverage, employees have ratcheted up demands. If not met, employees change jobs. An astounding 65% of American workers are actively seeking new employment at any given time.
Other factors also are driving this “great resignation,” as it is called. Inflation is one of them. Job change is a key way to leapfrog inflation. The national average increase in pay upon a job changes is 14.8%, almost double the current 8% inflation.
But money isn’t the only driver. Workers are leaving jobs for reasons beyond salary issues: They’re fed up with toxic company cultures, poor management and a lack of a work-life balance.
What workers want...and are getting
In addition to higher salaries and better management, other factors are motivating employees. They include:
More comprehensive health and wellness. Employers are adding on-site mental health benefits, on-site mammograms, fertility benefits, remote physical therapy, discounted prescriptions, subsidized cafeteria meals and employee nap rooms.
General perks. Some companies are helping to pay off student loans, giving unlimited paid leave, and offering professional development by paying for webinars and conferences. Others are stressing leadership training (at no cost) that is being called “upskilling.”
Enhanced time off. To be competitive, companies are offering the week between Christmas and New Years off with pay, floating holidays and paid time off on birthdays, to name a few.
Flexible and remote work options. Employees are asking for opportunities to work remotely—or at coworking sites—a certain number of days a week. Perks include offering the free use of laptops, paying for coworking spaces and stipends for office supplies. Upwork estimates that 22% of the workforce will work remotely by 2025. Perhaps most telling is that 32% of remote workers say they would quit their job if they were not able to continue to work remotely.
What will happen if unemployment rates increase
Will all of these employee gains evaporate if the unemployment rate increases? After all, the government is hoping that by increasing borrowing rates, inflation will slow, and the unemployment rate will increase.
So far, little has changed for workers. Even with higher lending rates, employment remains strong. The quit rate has dropped minimally (fewer workers are quitting), but the overall quit rate is still high because of the overall low unemployment rate.
Even as job growth slows, many employers will be hesitant to reduce these new employee perks. And some of the perks, such as remote work, may become more prevalent because they are associated with increased productivity.