Delayed pay rises fuels employee turnover, disengagement – report

“Our research shows that these decisions, while understandable, are not without consequence,” said Sean Puddle, Managing Director at Robert Walters North America, in a statement. “Whether it’s higher turnover or a gradual drop in motivation, companies are starting to feel the effects.”

The report further found that 57% of employees who didn’t receive a pay rise this year are now actively looking for a new job. This is also the case for 65% of employees who received a lower-than-expected pay hike.

“There’s a clear message here: even if employees understand the business pressures, unmet expectations are still pushing them to reconsider their options. And with AI tools streamlining the job application process, employees have more opportunities than ever to explore new roles,” Puddle said.

Difficult financial positions

The pressure to meet employees’ salary demands comes in the wake of financial challenges facing organisations.

“Businesses are under immense pressure to keep costs down, and for many, salary increases just haven’t been feasible this year,” Puddle said.