In ASE’s soon to be released 2016 Quarterly Economic and Employment Survey – 4th Quarter we are continuing to see the number one reason employees are leaving their organization are for better advancement and promotion opportunities. Compensation doesn’t even make the top three reasons why employees leave. As HR professionals it should come as no shock that it is not the money (or lack thereof) that is driving employees away, it is the other (mostly free) things that employees are seeking elsewhere.
A couple of recent studies provide two main reasons why employees are leaving, and like ASE’s survey it is not the money. The first is a study by the Gallup Organization that found that 69% of employees would prefer praise and recognition from their managers over monetary compensation. We have seen and heard this concept before, where employees crave intrinsic rewards. They want to feel that they are a valuable individual adding value to the overall team and organizational goals. This will in turn build trust and relationships leading employees to be more driven and productive.
The other study conducted by Korn Ferry has a different take as to why employees are seeking new opportunities. They found that the reason nearly three-quarters of professionals would hunt for a new job is to find a more challenging position. Kevin Cashman, Korn Ferry Senior Partner, said, “Professionals who have progressed in their careers have done so for a reason. They’re passionate about what they do and need to feel that they are being pushed professionally and continually learning new skills.” According to another Korn Ferry survey they found that nearly two-thirds of professionals said they would prefer a promotion with no raise over a raise with no promotion. Finally a third Korn Ferry survey showed that almost three-quarters of professionals said that their principal personal driver at work was a job that had purpose.
The take away from all of this is simple – give your employees opportunities to challenge themselves in an environment where they feel that they are part of something greater and not just an isolated island working on their own. Without offering your employees this type of environment they crave so desperately, there is not enough money available to get them to stay.
Sources: CCH, navigateresponse.com