HR leaders won't be surprised, especially in this highly competitive labor market
Despite the increasing push to work from home, the number one reason that employees leave their employer hasn’t changed since the beginning of time.
Nearly 60% of employees claim low salary is the main factor for why they quit their job, according to a study of 2,202 employees conducted by Flexjobs.
It’s not a revelation that workers leave companies searching for a new role with better pay and employee benefits. Salary and compensation play a significant factor in keeping employees motivated and loyal. When employees discover they are underpaid, they’ll most likely move to a different company that is willing to offer more pay that could help fund their lifestyles and expenses – even if they enjoy their current responsibilities in their underpaid role.
Employers should always keep themselves updated with the current industry trends, especially when it comes to role responsibilities, their standings in the industry and the minimum wage laws that govern specific job roles. This way, companies can offer competitive and fair employment packages to their employees – making employees happy and satisfied with their role.
California currently holds the highest statewide minimum wage in the United States with $14 an hour for employers with 25 or less employees and $15 an hour for employers with 26 or more employees.
However, there are certain Californian cities and counties who offer their own minimum wages such as Berkeley with a minimum wage of $16.32, San Francisco with $16.32 and San Jose with a minimum wage of $16.20. If the Californian city or county has a higher minimum wage than the state’s, then the employer must pay the higher minimum wage.
The minimum wage of “The Golden State” is set to increase soon. Governor Gavin Newsom announced on May 12 that California’s minimum wage is projected to increase to $15.50 per hour for all employees and workers starting January 1, 2023. The increase, trigged by historic inflation, will benefit about 3 million workers and is covered by Section 246 of the California Labor Code.
If someone else gets their way, then the minimum wage will climb even higher.
According to The Los Angeles Times, anti-poverty activist and entrepreneur Joe Sanberg filed the Living Wage Act of 2022, which seeks to raise the state’s minimum wage to $18 an hour by as soon as 2025. Under the proposal, the state’s minimum hourly wage would increase annually by $1 on Jan. 1, until 2025 for bigger employers and 2026 for smaller employers. Afterward, the minimum wage would go up each year by the rate of inflation of up to 3.5%.
For six other grave consequences of underpaying employees, click here.
