Thursday, 16 February 2017

Why Employees Quit Jobs? Here is What New Study Says

The days are gone where an employee can stick to a company for 30-plus years working day in and day out, doing mundane job routine and showing his commitment to the company. Employees are thinking beyond the gold watch companies use to reward employees with. Employees are no longer ready to stay in their age-old job with a fancy gold watch. In these contemporary ages, workers don't want to be a part of an old chestnut and change jobs and companies often in their career.

But, one should understand what is causing this change. Are there any factors that employers or HR personnel can know before hand if their employee is going to leave the company in order stop to stop from moving. The factors that identify whether employees are going to stay or leave for a better opportunity to a next role, called employee turnover, has been revealed by a study conducted by Glassdoor, It is a website where employees review companies and it's management anonymously. Their chief economist and data scientist have analyzed more than 5,000 job movements of employees from resumes submitted to them and matched them to the data with company reviews and salaries, to decipher why an employee will give a 2-weeks notice period.

Generally thinking, is it because of employee or employer that primarily causes the employee to make a jump. The major reasons for an employee quitting their job, one must understand, are under the control of the employer and its management. In fact, factors like an employee's workplace culture and environment, understanding of his or her job, opportunities, promotions, appraisals are all factors affected by the employer. 
We have highlighted few below. 

People change jobs and move to different roles in other companies many times during their career. When offered a next job role, some workers may stay while others prefer leaving the company. As per the comprehensive and in-depth survey done by Glassdoor, the cat is out of the bag! It's disheartening to say it, but your manager and your company’s Human Resources management can now foresee why you’ll be ready to say adieu!

Here are the factors that predict employee movement.

1. Career development resources

The study found and highlighted that better employee satisfaction, higher opportunities for career growth, the standard of an employer’s culture and maintaining values lead to higher employee retention.

2. Company gives you good hike

It is apparent that increased pay and raise leads to an increased retention of employees. The research found that when employees change job, they get a hike of 5.2% on present salary. Instead, if a company itself offers a 10 % hike in their base pay, the study depicts that the chances of an employee staying in the company will increase by 1.5 %.

3. Stagnant in current role

Staying too long in the current job role is another factor causing workers to jump ship for a new opportunity. Employees spend 15 months in a job role, on an average. This may not be applicable to few, like government workers who need to stay longer while those in the repair field or mechanical field change jobs averagely in every 10.6 months. HR managers came to know from this research that an employee being stagnant for more than 10 months has 1 % more chance to leave the company and finally move on and accept their next position.

The research data also depicts that employee turnover is a costly exercise for companies. But, they know what needs to be done to retain their employees. “Business that regularly plan and work to improve company culture, values, offer relatively better pay, regularly promote, give opportunities to employees, push them into new and better roles will retain longer,” says Chief Economist Dr. Chamberlain. Adding to that the Economist says providing career mobility and better roles are important, emphasizing “a promotion with simple job title may not be enough. Maintaining relatively consistent and competitive base pay is an important factor.”

Few Highpoints of Study:

  • Glassdoor's statistical analysis shows company culture and environment is very crucial for employee turnover.
  • Employers having better company ratings overall, providing good career opportunities and having a good culture and maintaining values ratings are more likely to stop employees from shifting.
  • Improving a company’s overall in Glassdoor by one star increases the chances of a typical employee staying in the company by 4 %.
  • Pay is an important but not the only factor. But employee pay matters for employee turnover. Glassdoor study found that a 10 % raise in base pay increased the chances by 1.5 % of average employee to in the company when shifting for a next role, even though controlling factors like job title, industry, location and company size statistically.
  • The study also focused majorly on job title stagnation and how it impacts employee retention. It says that every 10 months an employee gets stagnant in a job role, it makes him 1 % more likely to leave the organization.
  • It also researched and focused on three workplace environment culture elements saying that they had no impact on revenue and productivity. These are senior leadership, work-life balance, compensation and benefits ratings. Though these factors do matter for overall employee contentment, they don’t matter much for the number or percentage of workers who leave an organization.
  • The study also showed that some causes of employee movement are beyond the employer's control. Specifically, few findings of the study suggested improvement of competitive base pay, workplace culture, and providing regular opportunities for employees into new roles which would have direct association to lessened employee movement.
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