The Randstad 2020 US Compensation Insights Survey and Salary Guide Provide Employers With the Tools They Need to Review Compensation Offerings
Randstad US announced the findings from the Randstad 2020 US Compensation Insights survey, which explored the sentiments of American workers on salary negotiations and how fairly they believe they’re paid. The results showed Gen Z and millennials are much bolder in their approach to salary negotiations than their older colleagues. In fact, nearly 60 percent report they have leveraged a potential job offer as a negotiation tactic for a higher salary at their current companies — a stark contrast to just 48 percent of Gen X and 29 percent of boomers.
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“We’re seeing a few shifts in the way workers think about compensation. While salary has always been top of mind, today people are getting increasingly more strategic and assertive in their approach to climbing the pay scale — especially younger generations,” said Jim Link, chief human resources officer, Randstad North America. “This reality, coupled with a tight job market, requires employers to be more aware of their compensation offerings in order to stay competitive. A first step for employers is to determine where they stand in comparison to industry salary standards. There are a number of resources available to do this, including our recently released Randstad US 2020 Salary Guide.”
The Compensation Insights survey also found younger generations are more likely to be unpredictable in their actions after accepting job offers, with 50 percent of Gen Z and millennials admitting to “ghosting” an employer for a higher paying job opportunity elsewhere.
Compensation remains a key factor in employee retention, especially for younger generations
- Seventy-four percent of millennials expect a pay raise every year in order to stay at their companies, versus 62 percent of boomers and 66 percent overall.
- Forty percent say they’ve only ever received a raise if they’ve asked for one, but this number is higher among younger employees (55 percent of Gen Z and 59 percent of millennials) than older ones (26 percent of boomers).
- Seventy-six percent overall say their compensation is sufficient to make them stay in their current role for the next 12 months.
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All employees (despite age) desire greater pay transparency
- Fifty-five percent say their companies do not publish pay information for each role, and 60 percent say they wish their employers would make that information available across the company.
- Fifty-four percent say they aren’t clear on how pay increases or bonuses are calculated at their company.
There is still room for improvement in achieving gender pay equality
- Fifty-one percent of women report they’re considering leaving their jobs because they believe they’re underpaid.
- Sixty percent of women have never negotiated their pay, compared to just 48 percent of men.
- Seventy-two percent of women versus 59 percent of men say they would make a lateral move to a different company just to receive a salary jump they wouldn’t get if they stayed at their current company.
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