An increase in pay and benefits is the number one reason why employees want to change their job, a study carried out by the Chartered Institute of Personnel and Development (CIPD) has found. The Employee Outlook Survey carried out on 2000 workers found that the prospect of better pay has now overtaken job satisfaction as the main reason why workers want to switch to another employer. This is opposed to the findings of the survey last year where 61 per cent of respondents had rated job satisfaction as the most important factor. Indeed, job satisfaction is now at its lowest at 42 per cent since the beginning of the survey in 2009 when the world was in the middle of a recession.

This turnaround means that employees are increasingly feeling the strain of below-inflation pay rises and wage freezes since the beginning of the downturn. Indeed, 36 per cent of employees reported that their standard of living has worsened over the past six months as opposed to the 29 per cent last summer. Only nine per cent stated that their situation has improved. Moreover, the survey revealed that around one in five usually run out of money by the end of the month, while a similar number find keeping up with bills and other financial commitments a constant struggle, with one in ten workers admit falling behind with bills or repayments.

Ben Willmott, senior adviser at the CIPD, said: “Employees are feeling the squeeze as a result of pay freezes or low pay settlements that fail to keep up with inflation.”

Unions have been making noises for quite some time even here in Malta, but they are in a Catch 22 situation. It does not take a genius to understand that the weak economic outlook calls for a lot of patience and prudence, as every little upset can have considerable ramifications. The threat of industrial action by Air Malta pilots sent shock waves throughout the establishment and the business community. On the other hand, the unions have to represent the interests of their members and while they have been exercising maturity and intelligence in their claims, they are concerned that their members are experiencing a reduction in their living standards. This situation also brings about other consequences. In this regard, Willmott stated: “Besides being more likely to want to leave for more pay elsewhere, workers with financial difficulties are also more likely to report being under stress at work and are typically less satisfied with their jobs. Prolonged exposure to stress is associated with absence from work, higher levels of accidents and higher incidence of mental ill health.”

While statistics for Malta are not readily available, one would not be off the mark in saying that the situation on the island is similar. One example we came across was that of an intelligent and qualified woman who opted for a government job as opposed to a private sector position because she claimed that during a downturn, working conditions in the public sector keep improving while those in the private sector either freeze or go backwards. While acknowledging that this is a general statement, the fact remains that there is so much employees can take before they start making decisions that are strictly based on how much money they bring to the family. Finally, Willmott commented: “It is, therefore, in employers’ interests to support employees in tough times by ensuring line managers are equipped with effective people management skills and by providing advice and support on debt management and financial planning. Employers should also focus on communicating the value of their total reward package to employees.”

Maybe in times when economic growth is modest and the level of trust in the future is waning, public policy could look at the cost of living and take measures to increase public service efficiency by lowering expenditure on administration and increasing the value delivered to citizens. This will not send John Citizen on a shopping spree but it would make a difference to many who pay their taxes regularly.

Ms Camilleri is a researcher with the Foundation for Human Resources Development