During the Great Resignation, job hoppers landed a median pay increase of more than 20% when they joined a new employer, according to a recent Bank of America report featuring aggregated and anonymized data from the institution. But as of May, that increase has fallen to around 10%, as unemployment has risen to over 4% in the past year.
For talent acquisition leaders, the slowdown in salary increases bodes well for significant savings as they recruit candidates. However, employers may still have to spend big to retain employees. According to a global survey by recruiting solutions provider Hudson RPO, those who are thinking about leaving their current employer say they would reconsider the move for a minimum 30% salary increase.
However, even with that salary hike, only 44% of survey participants would ultimately stay with their current employer if they were unhappy with their job. According to Hudson RPO, a bad boss (35%) is the main reason employees want to bolt to another employer.
As HR leaders contend with divergent salary directions for recruiting candidates and retaining employees, they also must develop salary strategies for pay transparency and pay equity.
Jake Zabkowicz, global CEO at Hudson RPO, recently sat down with Human Resource Executive to discuss how HR leaders can set their salary strategies to recruit candidates and retain them effectively, especially when there is a disconnect between an employer’s compensation offer and employee expectations.
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