There are many reasons why employees quit their job. They may have a bad boss, are dissatisfied with their pay or company culture or frustrated by limited career advancement opportunities.
The reverse is also true for why employees keep their job, according to a new study – Why Do Workers Quit? – by Glassdoor, an online job and recruiting marketplace.
The economic research arm of Glassdoor examined more than 5,000 job transitions based on resumes that individuals posted on the site between 2007 and 2016 along with company reviews and salaries shared by employees.
The report revealed that “high employee satisfaction, better opportunities for career advancement, the quality of an employer’s culture and values and higher pay led to better employee retention.”
Increases in Company Ratings
Even a one point rating increase (on a one to five point scale) in career opportunities, culture and values raised the odds by five percent that employees would remain at their company when moving into their next role.
Up the Salary Bump Percentage
Salary hikes are also a catalyst for employee retention. On average, the study showed that employees earn a 5.2 percent pay increase when transitioning to a new position. However, a 10 percent bump in employee base pay increased the odds by 1.5 percent that they would stay put.
Put in the Work to Improve Culture
“Glassdoor data confirms there are many ways you can control whether employees stay or go,” stated Dr. Andrew Chamberlain, chief economist at Glassdoor and co-author of the research report, in the press release. “Employers that work to improve the culture, offer competitive base pay and regularly promote and advance employees into new roles will retain them longer.”
Every Industry is Different
No employee wants to stay stuck in a dead-end job. But how long they’re willing to remain in the same role before actively job hunting depends upon their industry.
The average worker remains 15 months in the same position. The study shows that the average stay for government workers is the highest at 18.6 months, followed by aerospace and defense (17.3 months); media (16.9 months); real estate (13.3 months); biotech and pharmaceuticals (12.7 months) and construction, repair and maintenance (10.6 months). By adding another 10 months to a role, employers also increase the chances of workers quitting by one percent, which is statistically significant, states the report.
Likewise, a simple change in job title doesn’t appear to be an effective retention strategy, adds Dr. Chamberlain. Offering a competitive salary still remains king for retaining workers or reducing turnover.
Competitive Base Salaries
“Maintaining competitive base pay is an important part of reducing turnover,” states Dr. Chamberlain in the release. “For recruiters, understanding competitive market value for potential candidates could be the difference between making the hire and losing the talent to an internal move within their current company.”
So whether employees are undervalued in terms of compensation, have remained stagnant in their job for at least one year, or work in a corporate culture that lacks concern for its employees, customers and community, they could be on their way out the door, never to look back.
Now that you’ve got the latest facts, the real question is are you or your clients going to do anything about it?