One in three employees missed out on getting a raise in the past year amid rising inflation, a new report revealed. With that, companies are seeing employee dissatisfaction rise as salaries remain stagnant and individual expenses continue to skyrocket.
According to a report by BambooHR, employees are beginning to wonder if their compensation truly matches what they’re worth.
The report revealed that when salaries don’t increase, dissatisfaction does, and this is more prevalent among female employees. More male workers reported that they had a salary increase in the past year than did women, and out of the men who received an increase, some received a 6.39% pay bump compared to female workers who received an average of 5.24%.
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Meanwhile, more than a third of employees, particularly, younger workers, say that their compensation is directly linked to their mental health. In fact, 54% of Millennials and 44% of Generation Z employees pointed out the link more than their Gen X and Boomer peers did.
When it comes to discussing compensation, 47% of respondents believe employees should be the ones to initiate discussions with their employer. Still, 22% feel uncomfortable proactively talking about compensation with their boss.
More than half of respondents (51%) say that – even if they disliked their job or company – they would stay on if the salary were high.
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However, the issue of salary does not entirely capture the whole picture. The report revealed that benefits are so crucial to employees that they would be willing to take a pay cut for them. If employees don’t get the benefits they need, they would quit.
The report underscores the need for employers to practice salary transparency and improve their compensation package. According to the head of BambooHR, Anita Grantham, understanding these trends have never been so important as employers enhance their employee engagement and retention.