Inadequate salary linked to employee departures
Good employees leave businesses everyday, but sometimes exit interviews don’t offer the insight that you need into the real reason why people go.
Employees often offer the cliche that ‘it’s time for a new challenge’ or the new job ‘is a chance I can’t turn down’. The problem with these answers is that they don’t give businesses the tools to right this situation in the future and retain their best talent.
If you are hearing those responses too much, then you could be interested in recent insight from Robert Half.
The recruitment firm surveyed 2,100 chief financial officers (CFOs) and 300 employees. CFOs were asked why they thought good employees leave their jobs, while employees outlined what reasons would cause them to quit their job.
From both sides, the most common answer was an inadequate salary and poor benefits (CFOs – 28 per cent and Employees – 38 per cent). This was closely followed by limited advancement opportunities (22 and 20 per cent).
Robert Half senior executive director Paul McDonald explained that there are plenty of opportunities in the market for unhappy employees to look for a better-paying job.
“Managers should regularly benchmark salaries against those of other companies in their region and industry to ensure they are at or above market standards,” he said.
“While many factors contribute to turnover, competitive pay and benefits can be the difference when it comes to retaining skilled talent.”
Other common responses from the CFOs and employees included management relationships (14 and 16 per cent) and being overworked (12 and 9 per cent).
Salary is one of the key areas for businesses to constantly review. As well as matching market rates, salary reviews should be made in relation to budgeting and the overall business plan.
With HRMS, online salary surveys and reviews can be completed to ensure both your employees and your bottom line are happy with current pay rates.