09 March 2017

BUSINESS - Why Employees Quit...or Stay

A recent study by Glassdoor Economic Research looked at what makes employees stay in a job or quit.

A review of over 5,000 job transitions revealed employees that stagnate in a job too long are more likely to leave their employers rather than move to a new role within the company.

The report also finds high employee satisfaction, better opportunities for career advancement, the quality of an employer’s culture and values and higher pay lead to better employee retention.

While a direct manager can impact a decision to stay or go, senior management has little to do with the choice.

With the trend in social innovation, particularly with young workers and entrepreneurs, it’s not surprising the study found culture and values are at the top of factors keeping employees in a job.

These results tie-in nicely with previous research showing how important meaningful work is.

“Employee turnover is costly for employers. Although you can’t control everything when it comes to turnover, Glassdoor data confirms there are many ways you can control whether employees stay or go. Employers that work to improve company culture, offer competitive base pay and regularly promote and advance employees into new roles will retain them longer,” said Dr. Andrew Chamberlain, chief economist of Glassdoor.

“In addition, these findings tell recruiters and employers looking to hire what to focus on to bring candidates in the door. For example, focusing on passive or active candidates that have been in their roles for quite awhile or are at companies without a strong company culture could help bolster recruiting efforts.”

Glassdoor data found the average worker spends 15 months in one role, and every additional 10 months an employee stagnates in that role makes them one percent more likely to leave the company when they finally move on to their next position.

With turnover costing an average 21 percent of an employee’s salary, there’s good reason to provide fresh opportunities to staff.

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