If you think better pay or improved work life balance would tempt you – or your employees – to quit, you may be surprised to read the latest study conducted by Glassdoor Economic Research.
The US-based jobs portal analysed more than 5,000 job transitions from resumes submitted to the site and combined that data with company reviews and salaries shared by employees to understand the statistical impact of various factors on employee turnover.
Employee satisfaction, better opportunities for career advancement, the quality of an employer’s culture and values and higher pay lead to better employee retention. However, workplace factors like work-life balance, senior leadership and the quality of compensation and benefits packages seemed to have no statistical impact on employee turnover.
When pay matters
But while pay is not a key factor in quitting a job, it does play a role in retaining employees. The statistical analysis in this study found that a 10 % increase in base pay increases the odds an employee will stay at the company by 1.5 percent.
Switching jobs is more profitable. Employees gained a 5.2% pay increase on average when they made a job transition.
Stagnation is dangerous
Boredom with a long time role is another important factor. The study found employees who stagnate in a job too long are more likely to leave their employers rather than move to a new role within the company.
The average worker spends 15 months in one role but turnover differs between industries. Workers in government (18.6 months), aerospace and defence (17.3 months) and media (16.9 months) spend the most time in their roles, while employees in real estate (13.3 months), biotech and pharmaceuticals (12.7 months) and construction, repair and maintenance (10.6 months) turn over more quickly.
Glassdoor chief economist Dr Andrew Chamberlain, because employee turnover is costly for employers, it’s important for employers to do what they can to retain employees.
‘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.
‘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.’
