Here’s how employees utilize the tight labor market to get a salary raise

Here’s how employees utilize the tight labor market to get a salary raise
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Robert Half District Director Michelle Reisdorf believes that more and more employees are going after jobs they have no intention of taking just to force their boss to make a counteroffer.

“They’re looking out for themselves, and because they have so many options, they really can explore and use what they know about other companies to get more in their current work situation,” she stated.

And unsurprisingly, hiring managers and employers, alike, hate this trend. Interviewing an applicant that does not have any interest in taking the job is a waste of time. Meanwhile, bosses who are scrambling to put together counteroffers are asking: Where’s the loyalty? 

The penalty for loyalty

Over the past year, in the midst of a nationwide hiring frenzy, employees began to realize that being loyal to their employers doesn’t pay. 

A report by Insider revealed that those who switched jobs during the Great Resignation are making seven per cent more on average than those who stayed put. And in tech and finance, the pay gap is even higher. 

So now employees are taking matters into their own hands — by applying for jobs they have no intention of taking. 

“You can’t fault them,” Reisdorf says. “Employees are finding that there’s a big gap between where they are and what they can get.”

Nick Louca, Head of New York Office at the recruiting company Robert Walters, added that employees should not have to threaten to leave just to get the pay that they deserve.

Are employees brave enough to upset their bosses?

On the other hand, job recruiters believe that playing the field to get a high salary is not a good long-term career move. 

For starters, they pointed out that a bigger salary won’t solve the underlying problem they have with their current job — whether it’s a toxic corporate culture, a lack of work-from-home privileges, or a bad boss. 

Moreover, your employer might end up holding a grudge. 

“If they know that you’re shopping, they’re always going to be worried,” says Gregg Salkovitch, the founder of Right Choice Resources. “It does break a lot of trust.” Lost trust doesn’t just mean things will get awkward between you and the boss. It could have implications for your job security in the event of a downturn. 

At the same time, LaborIQ Chief Analytics Office Jay Denton hinted that threats of leaving the company are not always countered with a higher salary. Some are unfortunately laid off. 

It’s not personal

Insider’s Senior Correspondent Aki Ito, asked the most important question on this topic: why should employers take it personally that their workers are shopping around? 

After all, a committed relationship requires devotion from both sides. After massive layoffs at the start of the pandemic followed by mass hiring when everyone is settled, workers have realized that their devotion is being taken for granted.

So, instead of staying loyal to their employers, workers are not treating their job the way they would a neglectful partner. And if employees feel that they are not receiving enough, then perhaps it is time to move on to greener pastures.

Read more here.

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