Workers want higher compensation rates than ever, but according to data from the Federal Reserve Bank, they're getting offered more than $10,000 less than they desire.
A July report from the Federal Reserve Bank showed that the current lowest average wage that a worker would accept when taking on a new role is $72,873 – a number that's dramatically higher than the year-over-year average of $68,954 in July 2021. However, for many workers, this full-time wage is little more than a dream, as the average full-time wage offered now is $60,764. These low salary offers, Forbes reports, are complimented by what employers call "non-tangible benefits," like time off, employee recognition, or more impressive job titles. But workers are willing to walk away if they get a wage offer that isn't up to their expectations.
"Workers still have lots of job opportunities right now. They have more bargaining power than they've had in the recent past," Nick Bunker, Economic Research Director at Indeed Hiring Lab, told Business Insider.
This issue could be a key part of decoding how businesses can survive the Great Resignation. The disconnect in employer and employee perspectives is nothing new. But the rift is growing ever larger at a time when the market is favoring job seekers. As employers report suffering due to supply chain issues, inflation, and a slowing economy, employees feel stable enough to be more selective about their employment options.
Additionally, the current job market is causing workers to re-examine the actual value of their labor. With a job market that favors those looking for a new role, workers feel more empowered to reconsider their options and change careers if compensation or fit isn't right. In fact, the Bureau of Labor Statistics reports that 4.2 million people quit their jobs in June 2022. And in July, 4.1% of workers said they were with a new employer, one which is undoubtedly meeting their expectations in a way their old employer couldn’t – or wouldn’t.