Workers are literally fighting over the temperature in their office. Maybe that’s why more are choosing to work remotely.
Seventy percent of employees around the world work at least one day of the week outside of the office, says a study from the International Workplace Group (IWG). And 53 percent work remotely for half of the week.
“People from Seattle to Singapore, London to Lagos no longer need to spend so much time in a particular office,” says IWG CEO Max Dixon. “We are entering the era of the mobile workforce and it is hugely exciting. Not just for individual employees, but for businesses too.”
Here’s how businesses are benefiting…
- Business growth: 89 percent up from 67 percent in 2016
- Competitiveness: 87 percent up from only 59 percent in 2014
- Productivity: 82 percent up from 75 percent in 2013
- Attracting and retaining top talent: 80 percent up from 64 percent in 2016
It’s interesting IWG’s study finds that the amount of top talent that companies attract and retain has increased among those offering flexible work schedules. Companies can’t keep new hires, and increasing their pay isn’t doing the trick. Maybe a flexible schedule convinces them not to leave.
Bosses can’t keep new hires on staff
Almost all (93 percent) workers polled by staffing firm Korn Ferry say “retention of new hires” is an issue at their company. Twenty-six percent of new hires say they’ll quit if unhappy with their job, even if they didn’t have another job lined up.
And offering more money isn’t enough for workers to get over their unhappiness with their jobs. Fifty-five percent say offering more money to a new hire who wants to leave won’t make them stay. And 82 percent say if they took a job they hate, even if it paid well, they’ll leave as soon as they find another job.
“Competitive benefits and salaries are table stakes to attract top talent, but creating an environment where employees are given interesting work and recognized for their efforts will give them a reason to stay,” says Korn Ferry VP Neil Griffiths. “Unhappy employees will not go above and beyond the basic requirements of their job, even if they are well paid.”
As new hires flee their companies, corporate executives are bringing home millions more every year.
CEOs are banking more than before
CEOs at the nation’s 300 largest public companies received nearly a 9 percent total direct compensation raise last year. That’s their annual salary, bonuses, benefits, and value of their stocks.
All of the typical CEO’s compensation last year, put together, adds up to $13.4 million. That’s double last year’s 4.2 percent increase, and the highest CEO total direct compensation raise since 2010. CEOs received a $1.3 million pay raise last year alone, which the study refers to as a “relatively flat” increase.
This information is publicly available thanks to the new Securities and Exchange Commission rule. The law is enforced under the 2010 Dodd Frank financial reform, according to Vox. The news site reports the rule requires publicly traded companies to disclose its executives’ earnings in comparison to its average workers. The law hasn’t stopped companies from giving executives the highest total direct compensation in nine years.
“Even with the anticipation of the CEO pay ratio disclosure mandate, so far we haven’t seen it dampen organizations’ willingness to pay for performance, including strong shareholder value and net income increases,” says Korn Ferry executive Donald Lowman.
Korn Ferry predicts to see changes in CEO pay next year due to changes to the executive compensation deduction rules of the Internal Revenue Code, a section of the Tax Reform Act that will allow more executives to only receive a $1 million tax deduction. Lowman expects executives to see more in pay next year.
“Much will depend on each organization’s financial performance during the coming year, but with the changes in the tax rules governing executive compensation,” Lowman says. “We expect we will see slightly higher increases in base salaries than in recent years.”
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