"This outlook has implications for retention strategies as well as companies' overall salary approach. In fact, employees list financial compensation, benefits, and growth and earnings potential as the top factors influencing their potential retention," the report says.

Three-quarters of management participants say they have increased wages to remain competitive. The same percent say they know the competition has done so as well. Yet 62 percent of the managers surveyed who say they are aware of the need to offer richer packages also say they just can't afford to do that.

"While employers seem to recognize the importance of raising wages to retain top employees, they largely are undecided on how to respond," the report says.

Other highlights of the survey include:

Retention strategies often fail: Forty-seven percent report they have replaced more than 20 percent of their workforce in the past 12 months. Why? "While employees prioritize financial compensation in their decisions, employers believe workers value more personal influencers, such as supervisor relationships," the report says.

Workplace diversity initiatives are often weak: Eighty-nine percent of employers say "a diverse and inclusive workplace fosters growth and learning." Three-quarters of employees agree with that statement. Yet "only 24 percent of employers and 28 percent of workers would give their companies an "A" grade for their efforts to create a more diverse and inclusive workplace." One-third of each group say their company would rate a "C" or lower.

Workplace diversity strategies are often seen as the problem: Thirty-seven percent of employees "believe that their company is more concerned with hiring for diversity than qualification when looking to fill open positions." Nearly a third of employers agree with that statement.

Overall, the survey indicated that plenty of employees are ready to head for the door at the first lucrative offer that comes along.

"The growing demands across the workforce for improved wages highlight that employees are no longer willing to settle for just any career opportunity," says Spherion Division President Sandy Mazur.

"Not only are the job market and economy trending upward, but we are witnessing a major change in mentality with critical implications on employer-employee relationships. While salary has significantly influenced employee decisions throughout the first 19 years of the (Emerging Workforce Study), we've never before seen workers this motivated to improve their situation."