Some 53% of American Gen Z and Millennial employees say they’re likely to quit their jobs this year. Globally, 43% of said they’re likely to quit sometime in the next 12 months, according to EY’s 2022 Work Reimagined Survey.
They’re looking for better pay, better career opportunities and flexibility in a time of rising inflation, a shrinking labor market and an increase in jobs that offer more choice about how they get things done.Gen Z, Millennial employees are ready to change jobs in search of flexible work, higher pay. #HR #HRTech @EYnews Click To Tweet
Sixty percent of employees in technology and hardware jobs are the most eager to leave their current positions in search of higher pay. Some 42% believe that pay increases are the key to addressing staff turnover – although only 18% of employers agree.
Flexible working arrangements – among the largest factors leading to employee moves last year – are now less of a driver. The reason: Most workers are already employed by companies that offer some kind of flexibility. Only 19% are seeking remote-work flexibility in a new job, while 17% say well-being programs would prompt them to move.
The Great Return?
Despite the continuing shift toward flexible working models, 22% of employers say they want employees to come back to the office five days a week. Employees, however, want to work remotely at least two days a week.
In addition, a shift was evident over employees’ view of culture and productivity. Workers reported a desire to seek out new roles “even though they hold relatively upbeat views about company culture,” the report said.
“The number of employees who believe their organization’s culture has improved has risen from 48% to 61% since the start of the COVID-19 pandemic,” the report said. “At the same time, employers’ confidence in their own company culture has dropped from 77% to 57%.”
And while employees believe that new ways of working have increased productivity, companies’ confidence in productivity is being eroded by increased turnover.
“Organizations have to work to retain their employees, instill trust and provide a package that takes into account total pay, career path and flexibility to balance market concerns and risks,” said Roselyn Feinsod, principal at Ernst & Young’s People Advisory Services.
The pandemic accelerated a work realignment that was already in progress, and transformed people’s views on success, purpose and value, EY said. “Rising inflation, the Great Resignation, expectations around environmental, social and governance (ESG) issues are reshaping a workforce terrain that we’re all trying to navigate with new eyes.” The workforce, “is resettling into pools based on how we work, what we value and who we are,” the firm said.