As the world of work evolves, an intriguing trend emerges: employees prioritizing substantial salaries over flexible schedules. Let's delve into the reasons behind this shift, exploring the allure of heftier paychecks and the diminishing appeal of workplace flexibility.
Flexibility has long been touted as the ‘it’ perk.
Now that millions of employees have enjoyed the ability to work remotely and shape their schedules, workers are increasingly reticent to give up flexibility – and would consider making sacrifices to have accommodating jobs
- In recent months, a shift has occurred: while flexibility is still high on the list, pay is moving center stage as a priority for job-seekers
- Both knowledge- and blue-collar workers with particularly in-demand skillsets are enjoying sharp salary rises, as labour shortages impact some industries
People tend to move for pay, especially when their pay is exponentially higher than they would be expecting
Chris Adcock
- Flexibility and company values are still important factors for workers, but they’re only the difference-maker when the salaries are comparable
- The companies “winning the race” for staff will be those who can offer both the work-life balance policies workers say they want and competitive pay
- With inflation causing workers’ pay to drop in real terms, we’ll see almost a re-evaluation of those top-five reasons why people move jobs
Demand for labor is outpacing supply in many sectors, particularly in tech
This means that graduates are being handed six-figure salaries as a recruitment tool amid the current labor market conditions
- In some cases, these workers may find themselves trapped in jobs they hate, especially if workers have built lifestyles around earning big pay-outs
- Such wages can also skew young employees’ perception of pay, blocking them from pursuing more meaningful career paths
- Huge salaries can also weigh young employees with a psychological burden
- Companies themselves may not necessarily get what they pay for
- Sky-high wages can effectively ‘buy’ a candidate’s willingness to clock unpaid overtime
It’s a case of if you’ve got somebody good, hold onto them
More than half (56%) of executive managers in a recent survey said they were starting to be faced with pay compression, where existing staff end up on lower salaries than new recruits
- Petrol prices are at an all-time high; transport fares have increased, and food and other essentials are on an upwards trajectory
- Some companies are offering financial and other incentives to tempt unhappy commuters back
High wages may feel good when someone gets a job, but once they start, they typically want much more
“The risk is employers, in some cases, assume staff are going to be super motivated because of their high compensation, but in fact they take it for granted”
- Tomas Chamorro, professor of business psychology at University College London
- Six-figure starting salaries will probably continue to be the norm in certain high-paying industries
- It’s unlikely there’ll be much of a trickle-down effect for entry-level workers in less elite sectors
When I first went back to the office, I was shocked. It’s just crazy expensive.
I think I saved something crazy like £6,000 in six months
- At work, Umus finds that expenses accumulate
- She has been working on a strict budget, but still end up spending between £22 and £27 on food and transport every office day
Subsidies, for some
Rising costs mean that workers who can do their jobs from home are understandably reluctant to head to the office unless they absolutely need to.
- Some companies are cognisant of employees’ concerns and are offering practical solutions aimed at alleviating costs related to office days.
- For example, media company Bloomberg is offering its US staff a $75 daily commuting stipend, which they can spend however they want.
