Compensation is the main link in the employee/employer relationship. The COVID-19 pandemic has impacted compensation and salary for many people both in America and across the globe with many people still feeling the sting of 2020 in their paychecks.
To learn more about how the COVID-19 pandemic has impacted pay changes and employee compensation across the globe, Elements Global Services recently surveyed over 2,000 people from both the United States, Canada, and the United Kingdom. Their aim was to learn more about feelings executive pay, raises and bonuses and overall compensation levels over the past year.
The first part of the survey asked specifically about pandemic pay changes. 2020 was a year that disrupted the global pandemic and left many workers either without jobs or working a reduced rate of salary. The survey found that Americans were the hardest hit in terms of pandemic pay changes. 65% of those surveyed said their income has either stayed the same or decreased during the past year. The top reason for pay loss during 2020? Pay cuts followed by loss of job. 39% of Americans surveyed said they took a pay cut because of the pandemic and another 29% report having lost their job.
Another thing that happened for many workers worldwide was freezes both raises and bonuses in 2020. 44% of surveyed respondents said their employer has stopped offered both raises and bonuses temporarily until the pandemic situation improves. On top of that over 50% of American workers who had a pay cut during the pandemic report that they have not returned to their full salary level yet.
Despite all these eye opening statistics, many workers are optimistic about making more money in 2021 than they did in 2020. Across both the United States, the UK and Canada over 50% of those surveyed said that they expect a health rebound to their compensation levels in 2021 and expect to take home more pay than they did last year. Another trend that is being embraced worldwide is the idea of being paid part of your compensation in cryptocurrency. 50% of UK workers said they would accept a portion of their compensation in Bitcoin if offered by their employer. 40% of Canadians said they would accept a portion of their compensation in Bitcoin if offered by their employer. 37% of Americans said they would do the same if offered.
The next part of the survey from Elements Global Services asked about unexpected income and what workers globally would use the money for if offered from their employer this year. 48% of surveyed respondents said they would use that extra money for savings. 25% of surveyed respondents report that they would pay off debt with any extra income earned in 2021. 16% said they would buy something they have been wanting and another 11% said they would buy something they need with that extra money.
The survey next asked about compensation levels and what percentage of pay raise it would take for workers to leave their current job. 35% of those surveyed said it would take a 20-25 percent pay raise for them to leave their current job. Another 34% of surveyed respondents said it would take a 10-15 percent pay raise to leave their current job. 16% of respondents said it take a pay raise of over 50% to leave their current job.
Sharing income with friends and family is something that some people feel more comfortable sharing than others. The survey aimed to learn more about how much people share with their inner circle in regard to finances and overall compensation. The survey found that 70% of Americas reported that some of their friends know how much they earn. People are much more likely to share details about their finances with their partner than their friends. 83% of Americans report sharing salary and compensation details with their significant other. Men were more likely to share details about their income than women, surprisingly. 65% of Americans report sharing how much they make with their parents and 48% share that same information with their siblings. 65% of Americans said they share details about how much they work with their colleagues, which is a practice that is often frowned upon in the workplace.
The next part of the survey asked about executive pay and whether or not workers feel that CEO’s and owners in the industries they work in are overpaid. Listed below are the full rankings:
1. Retail (66% think executives in this industry are overpaid)
2. Restaurant/Food service (66% think executives in this industry are overpaid)
3. Media/Journalism (64% think executives in this industry are overpaid)
4. Education (63% think executives in this industry are overpaid)
5. Hospitality (61% think executives in this industry are overpaid)
6. Insurance (61% think executives in this industry are overpaid)
7. Human Resources (61% think executives in this industry are overpaid)
8. Admin (60% think executives in this industry are overpaid)
9. Transportation (58% think executives in this industry are overpaid)
10. Skilled labor/Construction (58% think executives in this industry are overpaid)
11. Healthcare (57% think executives in this industry are overpaid)
12. Professional services (56% think executives in this industry are overpaid)
13. Legal (56% think executives in this industry are overpaid)
14. IT (55% think executives in this industry are overpaid)
15. Non-profit/Social services (52% think executives in this industry are overpaid)
16. Finance (50% think executives in this industry are overpaid)
17. Marketing/Advertising (50% think executives in this industry are overpaid)
18. Real Estate (50% think executives in this industry are overpaid)
19. Manufacturing (49% think executives in this industry are overpaid)
20. Engineering (42% think executives in this industry are overpaid)
21. Science (40% think executives in this industry are overpaid)
22. Government (37% think executives in this industry are overpaid)
The last section of the survey asked about negotiating salary. Surprisingly, 29% of workers worldwide said they have had zero communication with their bosses about salary in the past year years. The full report from Elements Global Services can be seen in the graphic below.
Infographic by: elementsgs
