Recent data from the Robert Half Jobs Confidence Index (JCI) suggests that firms could be at risk of losing future superstars, as younger employees have higher pay increase expectations and are more likely to take action if not rewarded.
The JCI, an economic confidence tracker produced in partnership with the Centre for Economics and Business Research (Cebr), highlights significant trends in employee expectations and behaviour.
According to the JCI, 73% of those aged 18-34 expect a pay rise within the next year, surpassing the national average of 65% and the highest among all age groups. This younger demographic is also more inclined to take action if their salary expectations are not met. The data also reveals that 81% of 18-34-year-olds would consider moving employers or seeking additional income sources if their remuneration remains unchanged. This is significantly higher than the national average of 68% and higher than other age groups.
Job Confidence and Market Optimism
The JCI indicates that high levels of job confidence are driving these expectations. Nearly two-thirds (61%) of young workers are confident in their job prospects for the coming year. Gareth Gage, Regional Managing Director at Robert Half, commented on the trend.
“We’re definitely seeing an increased level of job confidence in the market, and younger workers appear to be the most optimistic. With widespread reports of skills shortages and labour hoarding being noted across many businesses, it’s perhaps no surprise that these individuals are confident in their ability to secure the work and pay they want.”
Balancing Expectations with Feasibility
Despite the optimism among younger workers, Gage warns that salary increases may not always be feasible.
“However, salary increases aren’t necessarily feasible on the scale that some are asking, which means employers could be at risk of losing some of their future superstars at a pivotal time in the economic landscape. Ensuring that attractive and holistic employment packages are being offered will be crucial to attract and retain core talent in the immediate future. We’re seeing an increased desire from the workforce for benefits packages which include elements such as healthcare insurance and flexible working opportunities. These can often be a more cost-effective method of talent attraction in tough times. Those firms that really perfect their offering will be in the best place to retain high-performing professionals as we move into a more positive climate.”
Importance of Holistic Employment Packages
To address the expectations of younger employees and mitigate the risk of losing top talent, firms need to also consider offering comprehensive employment packages. This includes not just competitive salaries but also benefits such as healthcare insurance and flexible working opportunities. These benefits can be more cost-effective and appealing to employees, helping firms to attract and retain talented professionals even during challenging economic times.
