In the last two years, the pandemic-led shift in the labor market resulted in employees asking for more perks and compensation and also receiving them that were unimaginable before the pandemic.
A new survey conducted by Harris Polls on behalf of Bloomberg News found 58% of the respondents saying that companies have better leverage in the job market.
The uncertain economic conditions in the US make it hard to figure out what has resulted in a change of sentiments. The job figures added in July were expected and suggested a red-hot labor market. Recent unemployment data showed it had dropped for the first time in three weeks.
Corporates in Power
It is frequent nowadays for big companies to announce layoffs. Apple Inc. is letting go of workforce placement agencies. Peloton recently cut hundreds of jobs while Robinhood laid off a quarter of its employees. A recent survey found that more than half of US companies plan to cut their workforce.
Keeping this in mind, employees feel less empowered to ask for remote work or a raise. In a poll conducted among employees, 59% said they would prefer a raise as inflation is at an all-time high, but they are uncomfortable asking for it.
CEO of Harris Poll, John Gerzema, says it’s a game of chicken. Employees either ask for a raise, move to another higher-paying job, or maintain the status quo considering job security in times of recession and economic uncertainty.
Increasing Tension
Workers are now worried about remote work also. For two years, bosses who favored the return to office struggled to get the employees back as covid cases surged.
However, many organizations say that this summer will be the last for full remote work. Employees are getting the message, with only 51% of the respondents believing they could negotiate a hybrid or full-time work from home without fearing repercussions on their jobs.
Americans still feel encouraged by the strong job market. Six out of ten employees feel they can easily get a job with higher pay. More than half of the employees try to get higher offer letters and bargain for an increase in current jobs. This number has been unchanged since January but has increased by nine percentage points for Gen Z.
Maggie Mistral, an executive coach and career consultant in Florida and New York, feels the messages are conflicting. While layoffs and people are worried about their jobs, some industries are also growing.
Employees are citing economic volatility as a reason for not leaving their jobs. 62 % of the respondents said that economic fluctuations are the reason for not changing jobs. This percentage is higher among millennials and Gen Z.
The online survey was conducted on a sample of 2007 US adults between August 12 -14.
