Mercer study revealed that one in three employees plan to quit their job in the next 12 months, suggesting an increasing number compared to a few years ago. Another study commissioned by Robert Half also found similar findings that employee turnover will increase in the next 12 months. About 10 percent employees are estimated to change jobs which is equivalent to almost 21,000 workers based on the current employed finance workforce.
What will happen if mass turnover hit your company? Losing highly-performing employees will cost a company 200 percent of employees’ annual salary. It is worse than or same as hiring wrong talent. Therefore, to prevent your organisation from facing such nightmare, understanding why talented employees are looking to change jobs is important.
Here are some reasons why employees leave their current career:
Many employees are trying to ‘buy’ employees by offering high salary. While financial compensation still becomes an important factor when an employee is making a job decision, it is often overshadowed by cultural considerations. Many employees switch their job in at least 2 or 3 years due various reasons such as pursuing better personal well-being, stability and job security, for increasing income, or great brand/reputation.
Just like any other professional skills, management is a skill that needs to be learnt and developed continuously. Unfortunately, many workplaces promote people into management positions based on their work, not their ability to manage and lead. That being said, employees are more likely to take a job that gives them more autonomy.
Employees are often driven by the opportunity to grow in their career, learn new skills, and gain new experiences. If they do not feel like they have these opportunities, then workplace becomes a ‘job’ and employees often disengage. Survey from Will Towers Watson found that 70 percent employees said they want to leave jobs because they see no future advancement.
When it comes to employee recognition, only a few people are looking for big cash bonuses. Many of them just want to know that their work is valued by leaders within company. More than three in four employees (76 percent) said that they prefer to quit their job the next year if they do not feel adequately recognised.
Who wants to work under bad circumstances or noisy bosses? None. Employees leave their job because of their bosses, more than any other reason. No one wants to work with a miserable or aggressive boss. 92 percent of employees are likely to leave jobs if their boss is too ‘bossy’ and do not show empathy.
In the war of talents, people do not want to navigate the complex office politics unless they see value or a path to the top. Putting out a qualified resume can often be a faster way to climb the corporate ladder.
Nobody wants to be the last passenger on a sinking ship. Employees – in this case – can feel the strain and hear the panic of leaders in a low-performing company. When one person ‘jumps ship’, others will too. Only those who are vested in some monetary way seem to stick around.
In the end, as you have learnt why many of your top talents choose to leave their job, you might realise some of the reasons already. Be it in the list above or not, you better plan solutions before disaster happens in your office. There are things you should add in your plan to retain your top talents and stop the disaster. Here are 6 forms of recognition from 7pace you could add to your employee compensation plan.