Understanding why employees leave will lead to improved retention
Date posted: 26th Nov 2015
Ensuring you not only recruit new staff but retain your existing talent is one of the biggest problems facing business owners and hiring managers across businesses of all types.
Do your staff feel their salary is competitive? Are they satisfied? Are there opportunities for skills and career development within your organisation?
By gaining key insights into what drives your employees to leave you’ll be able to put in place best practices helping you retain and grow your staff to deliver your company’s full potential.
Our 6th ‘Digital Salary & Industry Insights report’ brings together the thoughts of over 1,800 respondents from our four key sectors: Marketing, Commercial, Creative Services and Technical and presents a broad insight not only into people’s salaries, but their opinions on their current jobs.
52% of individuals within the sample stated they were willing to move to a new role during 2015. This was consistent across all industries, levels of seniority, from junior to C-Level, and was slightly higher amongst men. Additionally, the report highlights that staff who have been with a company for 2-5 years are the most likely to move on and it’s this group who require the most attention.
Remuneration perceptions prove to have a strong influence on leaving intentions, with professionals who believe they are underpaid more likely to seek a new role. 28% of those who felt they were underpaid were considering changing roles during 2015. Contrastingly, 60% of individuals who felt they were fairly, and 71% who felt they were over paid, intended to stay in their role.
The decision to leave is not all about the money, however, with the lure of a new challenge (21% of all respondents) and a lack of development opportunities (17%) also key determining factors. In fact, salary decreases as a driving factor as seniority increases, with career progression and lack of development more salient factors. Among C-Level professionals, salary accounted for only 5% of leaving decisions, with new challenges and career development at 25% and 21% respectively.
Whilst all this is important to better understand your employees, it is more important to use the information to retain the top talent within your business.
Employees should be confident that they are fairly compensated for their roles and remuneration perceptions need to be taken into account. Salary benchmarking is a must, both at the initial recruitment stage and during ongoing salary reviews in order for staff to have positive perceptions of their remuneration.
It remains crucial to build initiatives designed to engage those in post for 2-5 years, as they remain the most likely to move on. Career progression and job enrichment initiatives needs to be promoted within organisations and when a position opens up, staff should be considered internally for the role, as well as opening it up to external candidates.
Training and development opportunities should be provided to upskill your staff, keep them happy and motivated and ultimately beneficial to your company. Additionally, developing a productive and welcoming organisational culture and working environment should go towards improving your retention rates.
View the full report here.