Two separate surveys show Americans are becoming more confident about their job security and the potential for pay raises in the near future. Randstad’s U.S. Employee Confidence Index for March increased to a six-month high, reaching 57.1, up 3.1 points from the previous month. The rise in employee confidence is linked with a strengthening U.S. economy, which gives way to an improved job market. With the American workforce feeling optimistic about the employment situation in the U.S., employers may look into solutions for total compensation management to better track employee performance and merit increases.
The Randstad survey indicates workers’ perception of job security surged 5 points up from February to 77 points in March – the highest since May 2008.
“In concert with rising employee confidence, we see the workplace tilting toward a candidates’ market,” said Michelle Prince, senior vice president of talent management at Randstad North America. “This candidate-centric dynamic is reflected both in our index figures and broader economic indicators, and candidates rightly feel confident that 2014 holds professional promise.”
Importance of employee engagement for retention
While the majority of employees feel confident about their ability to hold onto their current job, employers may want to focus on worker engagement and retention through more effective incentive compensation management. Although Randstad’s indicator of job transitions revealed employees were less likely to look for a new job in March compared to the last month, one-third of Americans may search for a different position. With employee confidence at a high, incentive compensation software could give employers insight into workforce performance and stay in control in a job seeker’s market. Offering employees the right incentives as a reward for their performance could help sway them from moving onto another competitor.
The Glassdoor Employment Confidence Survey found 44 percent of the workforce in the first quarter of this year said they expected a pay raise in the next 12 months. The same number of respondents said they were confident in their ability to land a job that matched their experience and compensation in the next six months if they had to leave their job. This is 3 percentage points higher than the previous quarter and a more than four-year high.
Workers may be looking for compensation increases, as they are also more optimistic about their company’s business outlook over the next six months. The Glassdoor report said 44 percent of employees said business will improve, an increase of 2 percent compared to the previous quarter, while 47 percent said it will remain the same.
