In Latvia, less than half (49%) of the surveyed population between the ages of 18 and 39 recognize inadequate pay as the most common reason for changing jobs, according to the study conducted within the framework of the “Youth. Work. Environment” index implemented by the company “Evolution Latvia” and the platform “Visas oposni” which was made in cooperation with the company “Norstat”. It follows from the obtained data that the number of young people who are satisfied with the salary at their workplace has slightly increased.
It should be emphasized that as part of a study carried out a year ago, 55% of young people stated that they change their workplace due to inadequate pay, which shows that pay has apparently become a less important factor when deciding whether to continue or terminate an employment relationship, in addition, there is a tendency among employees that others factors such as lack of satisfaction in the workplace become a more important criterion.
“The research shows that nowadays young people already at the beginning of their careers expect a competitive salary that would correspond to their education, motivation and desired standard of living. It is important that even at the beginning of their career young people are aware of their value, feel self-confidence and want to be appropriately evaluated by employers parties, therefore the employer should strive to invest not only in raising the salary of employees, but also in providing employees with opportunities for growth in the long term. For example, in the “Evolution” team, 170 to 200 employees receive a promotion every year on average, and each of them has the opportunity to participate in various training and professional development events, ” explains Sanita Kļaviņa, HR manager of the company “Evolution” in Latvia, Lithuania, Romania and Bulgaria.
When asked what were the reasons for changing the workplace, the majority (57%; previously 59%) of the residents of Pierīga most convincingly note inadequate pay. This is the most important argument for at least half (52%; previously 57%) of people in Zemgale, followed by almost every second (47%; previously 56%) resident in Riga and Kurzeme (48%; previously 56%). A slightly smaller proportion emphasizes the specific reason in Latgale (42%; previously 48%), while the number of young people dissatisfied with pay who left their jobs for this reason has increased significantly in Vidzeme, as indicated by more than half (54%, previously 45%) respondent.
Changes can also be observed in other answers about changing the workplace, for example, the data of a study conducted a year ago show that a third (35%) left their job due to a lack of growth, while this year only 28% of respondents cite this as the reason. This year, the second most frequently cited reason why young people change their workplace is a job that does not give satisfaction – 29% of the respondents note this. A year earlier, this indicator was 22%, so it can be concluded that young people more actively feel the desire to work in a workplace that provides not only financial, but also psychological fulfillment and opportunities for growth.
In Vidzeme and Zemgale, every fourth (26%; previously 27%, and 22%; previously 25%) residents recognize this, respectively. A similar scene can also be observed in Kurzeme – this year, 28% of young people indicate a lack of satisfaction as the reason (previously 25%). In Riga, a third (35%) highlight the lack of satisfaction, and a significant increase in dissatisfaction can be observed in the capital, as the number of dissatisfied residents has increased by 14% (previously 21%). A similar trend can be observed among the residents of Pierīga, where the percentage increased from 18% to 28% during the year. On the other hand, 19% (also previously 19%) of Latgale residents give it the least importance.
Sanita Kļaviņa points out that companies must take into account the wishes of young people in the increasingly competitive battle of companies for valuable employees. Employers who are aware of this will be popular among young people. At the same time, the personnel manager emphasizes that in addition to competitive remuneration, companies should also provide other attractive factors for young people, such as growth opportunities, an inclusive and diverse work environment, sports, cultural events and other bonuses.
“I am very happy to see that young people increasingly appreciate the values of companies when choosing their workplace, and although money is a determining factor, young people are aware that it is not the only important thing. Of course, it is worrying that a very large number of young people there is a lot of ignorance and fear of the labor market. That’s why it’s a pleasure that with “Visas opus” and “Darba Tinder” – a platform where we bring together young people and employers – we can make the process faster and more personal, creating the feeling that there are job opportunities in Latvia and that you don’t have to be afraid to look for, find and use them,” emphasizes Gustavs Upmanis, representative of the platform “Visas oposni”.
The results of the research show that other important reasons why young people choose to change their workplace are the lack of balance between work and private life, mentioned by 17% of respondents, and disagreements with the team, which influenced 13% of the population to choose another workplace. It is significant that the majority of respondents, or every fifth (20%), cited this as a reason for this as a resident of Pieriga, while the least (6%) were young people employed in Zemgale.
“Evolution Latvia” together with the company “Norstat” carried out the research on the trends of the Z and Y generation workforce in October 2023, as well as at the end of 2022, by surveying 504 Latvian residents between the ages of 18 and 39.
