WJR Business Beat: Employees Switching Jobs in Search of Higher Earnings (Episode 459)

Good morning, Paul! One would think with uncertainty about where our economy is headed and given the current climate people would be hunkering down and doing all they can to shore up their current employment status. But in fact, Paul, people are still thinking of quitting their current employment in search of what may represent the proverbial greener grass on the other side of the hill.

At least until now that strategy seems to be paying off for many as the majority of those switching employers are seeing higher earnings at their new position, according to a Pew Research Center analysis of U.S. government data. From April 2021 to March 2022, a period in which quit rates reached post-pandemic highs, the majority of workers switching jobs, 60% of them, saw an increase in their real earnings over the same month the previous year, while workers who remained with the same employer, that is fewer than half, experienced an increase in their real earnings. And not surprisingly Americans cited low pay as one of the top reasons why they quit their job in search of a new one.

So, what does the future hold? Well, a new Pew Research survey finds that about 1 in 5 workers say they are likely to look for a new job in the next six months. And, of course, much of this transition will occur in the small business sector, which tends to see higher turnover rates than the big corporate environment does.

So if you’re a small business owner trying to protect your current team, and keep them from switching to another employer, the time is now to focus on offering perks and benefits that don’t cost a lot to you, but put you in your best position to compete against alternative employment temptations, potentially compelling your best employees to shop around and perhaps worse even make a move.

I’m Jeff Sloan, founder and CEO of startupnation.com, and that’s today’s Business Beat on the Great Voice of the Great Lakes, WJR.