As you prepare your salary budgets for 2023, it’s important to know employees’ expectations in terms of pay and perks so you can avoid having to replace your best people in the new year and retain those you bring on for new roles.
New research from Robert Half sheds light on people’s top priorities and salary expectations in the current job market. Here’s what you’ll need to know.
Changing expectations for pay, benefits
To recruit top talent and retain current employees, you may need to raise salaries going forward, according to Robert Half data.
In fact, 46% of your peers are offering higher starting salaries to new hires – and 83% of managers who increased pay for new hires have also adjusted the pay of current staff members.
If you aren’t increasing pay, expect to hear from your employees about it. Over half (55%) of employees feel underpaid right now, and 48% will be asking for a raise by year-end if their employer doesn’t give them one – or if a pay increase is lower than they expected.
And if another employer promises them a 10% increase in pay, 41% of them would consider taking the offer.
Employees aren’t just saying they deserve raises, however. They’re doing the work to prove their worth, including:
- Taking on new responsibilities outside of their job descriptions (50%)
- Acquiring new and relevant professional certifications or skills (33%), and
- Researching salaries and sharing any discrepancies with their managers (30%).
People are also being more proactive with their salaries and benefits. Keep this in mind with your new hires: Nearly 60% of professionals are more likely to request a higher starting salary today than they would’ve been 12 months ago, and 54% said they feel they’re in control when they’re negotiating pay, benefits and job-related perks.
Speaking of benefits and perks, employees expect more from their employer than just the standard offerings. Your peers are responding and offering them benefits such as:
- Remote work opportunities (40%)
- Mental health resources (36%), and
- Wellness programs (33%).
Bottom line: Employees expect their employers to consider their total health and well-being through relatively generous benefits, salaries and job perks. And if their expectations aren’t met, they aren’t afraid to explore their options and find an employer that’ll give them what they’re looking for.
This sentiment should be top of mind for all CFOs while you’re reviewing salary budgets and considering benefits for 2023 and beyond. Otherwise, you’ll fall behind on the war for talent and spend big bucks filling key roles in Finance and other departments.