A recent survey by a leading HR firm showed that many employees believe their pay is unfair and are not adequately compensated for their time and labor.
The Gartner survey of 3,523 employees in 2Q22 found that less than one-third of employees feel they are paid fairly.
The survey also found that “employees who perceive their pay as unequitable have a 15% lower intent to stay with their employer and are 13% less engaged at work than employees who perceive their pay as equitable.”
“Employees’ sensitivity to perceived pay gaps is being exacerbated by today’s economic conditions, including rising inflation and the hot labor market, which is causing a shift in compensation between tenured employees and new hires,” said Tony Guadagni, senior principal in the Gartner HR practice.
Reports show that inflation is the driving cause of workers’ discontent and stress.
Economic pressures are intensifying for job seekers, and professionals as inflation rates and fears of a recession grow. Remote.co’s Work & Financial Wellness Report surveyed over 1,100 global professionals between October 13 and October 30, 2022. According to the report, 80 percent of respondents said their current salary is not keeping up with inflation.
Record High Company Profits
The Hill reported just yesterday that “corporate profits in the non-financial sector hit a record high of $2.08 trillion in the third quarter even as 40-year-high inflation continues to squeeze American consumers”.
While companies continue to rake in profits, workers’ wages remain stagnant, and the pay gap between workers and CEO grows. Recent strikes at Starbucks, Amazon, and other large companies show the growing anger from the working class.
The latest threat of strikes from railroad workers while bargaining for a few days of sick day against companies that bring in billions of profits
Senator Bernie Sanders said in a tweet:
At a time of record profits in the rail industry, it’s unacceptable that rail workers have ZERO guaranteed paid sick days. I’m LIVE on the floor of the Senate NOW to demand a vote on guaranteeing 7 paid sick days for all rail workers. https://t.co/Ppua2lmcpJ
— Bernie Sanders (@SenSanders) November 30, 2022
Are the growing pay gap and the growing corporate profits the cause of the growing employee discontent?