Survey of over 52 000 workers indicates the Great Resignation is set to continue as pressure on pay mounts

• Skills shortages give employees more clout: Skilled employees most likely to ask for promotions and pay raises, and to feel listened to by their manager, while those lacking skills lack power in the workplace

13 July 2022 – The Great Resignation will continue apace in the year ahead as one in five workers say they are likely to switch to a new employer in the next 12 months. That was a key finding from PwC’s Global Workforce Hopes and Fears survey of 52,195 workers in 44 countries and territories - one of the largest ever surveys of the global workforce. 

The survey finds that 35% are planning to ask their employer for a pay raise in the next 12 months. Pressure on pay is highest in the tech sector where 44% of workers surveyed plan to ask for a raise and is lowest in the public sector (25%). 

Skilled employees feel most empowered, increasing workplace inequalities 

A key aspect of worker empowerment is having scarce skills. Some 29% of respondents said their country lacks people with the skills needed to perform their job. Countries with the biggest perceived gap in skills include Thailand, India and Brazil. The industries with the highest share of respondents who feel their skills are scarce are healthcare (including pharmaceutical firms), technology, media and telecommunications.

The data shows that those with in-demand skills (29% of the sample feel they have skills that are in short supply in their country) are more likely to feel satisfied with their job (70% v 52%), feel listened to by their managers (63% v 38%) and have money left over after they pay their bills (56% v 44%). To close the skills gap, workers say companies are investing in the current workforce through upskilling and increasing wages. By contrast, workers are less likely to report a focus on automating, outsourcing, and recruiting.

Zia Paton, Digital Services leader, PwC in the Caribbean, said:

“Businesses must do more to improve the skills of workers and adapt to build the teams needed to successfully deal with the challenges and opportunities of the future of work, including digital transformation. By upskilling or acquiring skills, workers can gain the control over the work they are looking for. 

“In the Caribbean, there is a critical need for communities to not only build specialized talent pipelines, but also foster an environment that encourages that talent to stay and thrive within the Caribbean. When it comes to retaining employees, our survey finds that meaning is as important as money.”

Paton added: “Our Digital Nation Survey 2022 of over 2,000 Caribbean citizens points to a clear gap between advocacy (91%) and adoption (46%) of government digital services. Addressing skills deficiencies will go a long way in bridging this gap.”

While an increase in pay is a main motivator for making a job change (71%), wanting a fulfilling job (69%) and wanting to truly be themselves at work (66%) round out the top 3 things workers are looking for. Nearly half (47%) prioritised being able to choose where they work.

Workers who are likely to look for a new employer in the next 12 months are less likely to feel satisfied with their current employer. Compared to those who have no intention of changing jobs, they are:

• 14 percentage points less likely to find their job fulfilling 

• 11 percentage points less likely to feel they can truly be their self at work 

• 9 percentage points less likely to feel fairly rewarded financially

Discussions about social issues are an everyday feature of the workplace. Employees are benefiting, despite a lack of support from employers.

The survey found that 65% of workers discuss social and political issues with colleagues frequently or sometimes, with the number higher for younger workers (69%) and ethnic minorities (73%). While business leaders are sometimes nervous about people bringing these potentially polarising issues to work, the impact is net positive. 

79% of those who talk about social and political issues at work reported at least one positive consequence from that. With political and social issues alive in the workplace, the job for employers is to create a context which secures the benefits of open conversation while minimising the negative impacts - 41% reported a negative consequence of discussions about social issues. Both numbers were significantly higher for people who consider themselves part of an ethnic minority (84% positive and 59% negative). 

These discussions are happening despite little active effort on the part of organisations to help secure positive outcomes. Only 30% of employees say that their company provides support to help them work effectively with people who share different views. 

Bhushan Sethi, Co-Leader of PwC’s Global People and Organisation services said:

"Diverse workforces will inevitably bring differences of opinion about major societal issues into their workplaces. Leaders need to ensure these discussions can benefit teams rather than dividing them.The role of employers isn’t to tell workers what to think, but to give them a voice, choice and safe environment to share feelings, listen and learn about how these issues are impacting their colleagues.  Workers, especially younger and ethnic minorities feel the benefits of engaging in respectful and tolerant conversations."

The survey paints a picture of a workforce polarised on a number of dimensions

Women were 7 points less likely than men to say they are fairly rewarded financially, but still 7 points less likely to ask for a raise. Women were also 8 points less likely to ask for a promotion, and that request is more likely to fall on deaf ears – as women are 8 points less likely than men to feel their manager listens to them. 

Both of these findings appear to reflect longstanding problems in wealth inequity, and they highlight the need to advance the gender-equity agenda, including pay transparency and higher female participation in the labour force.”

There were also significant differences between generations, with Gen Z workers less satisfied with their job and twice as likely as Baby Boomers to be concerned that technology will replace their role in the next three years.

Flexible approaches resonate with the workforce

Among full-time remote workers (about 17% of all respondents), more than two-thirds are concerned about missing out on development opportunities. These employees, who are likely to be younger, need a more proactive approach to performance management and career development. For managers, the goal is to distribute opportunities equitably, regardless of whether employees come to the office or work at home.

Felicia Steffen, PwC Bermuda, senior manager, Advisory, said:

“In other words, hybrid work is here to stay. The precise ratio of office time and at-home time will vary, but companies need to experiment and adapt. That includes addressing the factors that drive retention risk—including authenticity, meaningful work and pay transparency—all of which become harder when employees aren’t in the same location every day. Companies also must invest in technology to support remote work and put the right governance in place over decisions regarding pay, promotions and other rewards, to fight ‘proximity bias.”

The survey showed that workers have a particular interest in their employer’s impact on the economy, climate and society. Half of workers (53%) felt it was important that their employer is transparent about their impact on the environment, two-thirds (65%) felt transparency about health and safety was critical, with transparency about economic impact not far behind at 60%, followed by diversity and inclusion efforts at 54%. 

Other key findings from the survey include:

• 45% of respondents said their job could not be done remotely

• Of those who say their job can be done remotely: 

  • 63% say they prefer some mix of in-person and remote working - the same proportion who said they expect their employer to offer that mix for at least the next 12 months

  • 26% of employees would prefer full-time remote work, but only 18% say their employers are likely to adopt that model. 

  • Another 18% say that their employers are likely to require full-time in-person work, which just 11% of employees prefer.

NOTES TO EDITORS

1. In March 2022, PwC surveyed 52,195 individuals who are in work or active in the labour market. The sample was designed to reflect a range of industries, demographic characteristics and working patterns. The sample was structured across 44 countries and territories and sample sizes were scaled to reflect each territory or region’s share of global GDP. They range from 5,000 to 250 with an average sample size per territory of around 1,200.

2. The age groups in the survey are categorised as Gen Z (ages 18-25), Millennials (ages 26-41), Gen X (ages 42-57), and Baby Boomers (ages 58-76).

3. The report can be found here.