The Jobs Gap — What Do Workers Really Want And How Can MSCI Help?

A new survey of U.S. workers has found the “Great Resignation” that has plagued employers over the last several months is unlikely to end soon.

According to a report by the talent acquisition firm Lever, 65 percent Gen Z workers (individuals who were born after 1997) are highly likely to quit their jobs in 2022. Forty percent of workers overall said they were likely to leave. For younger workers pay is not their primary reason for seeking other employment options. In fact, the survey found 42 percent of Gen Zers would rather be at a company that gives them a sense of purpose than one that pays more.

The biggest motivator for employees who are planning to stay in their position, however, is salary and/or potential bonuses. Nearly half (46 percent) cited that factor as a reason for staying with their current employer. That factor was followed by good paid time off and flexibility at 21 percent and the opportunity for internal mobility at 13 percent.

Employers are responding with those incentives. According to data released by the U.S. Department of Labor last week, 14.5 percent of private-sector businesses — 1.2 million establishments that together employ 20.5 percent of all private-sector workers — increased base wages as a result of the COVID-19 pandemic. Employers in the manufacturing industry increased base wages at a higher rate than average.

Still, the number of unfilled job openings is weighing on businesses, particularly small ones. The National Federation of Independent Business optimism index fell to 97.1 this month from 98.9 in January, and it now at its lowest level since February 2021. Forty-seven percent of owners reported job openings that could not be filled, a decrease of two points from December. Read more here.

MSCI can help its members tackle these workforce challenges. We encourage members to:

• Attend our free, one-hour webinar on March 9 with Dr. Timothy Trainor, president of Mount St. Mary’s University. Trainor will examine what college graduates are looking for in their first employer and will identify the issues employers need to know. More information and registration is available here.
• Purchase and download our 2021 Production Employee Compensation Survey, which collected salary and compensation data on several production positions found in the metals industry. More information is available here.