A survey conducted by PayScale on the reasons employees quit their jobs proved that compensation (25%) remains the main reason most employees seek new jobs. This survey was conducted on a number of people with an average work period of 13 years. While some of the other reasons are discomfort at the current company (16%), the desire to work at a new company that is in line with their values (14%), a change of location (11%), looking for a full time job (10 %), as well as several other reasons.
Meanwhile, the strongest reason for choosing a new company was the opportunity to do more meaningful work (27%) and get more responsibility (17%). Regarding the salary increase, it has a lower percentage (16%).
Overall, there are similarities in the reasons why someone resigns by choosing a new job. Those who resign because they want a higher salary will choose a new job also based on the higher salary. As many as 46% of respondents resigned because they did not match their values with their work and would look for new companies because they wanted to do more meaningful things in their work. Those who want a promotion will also look for new jobs based on the greater responsibility they have acquired.
The Higher The More You Want Promotion
A pattern that also appears is how those who are already in managerial positions still want promotion and more responsibility. Therefore they decided to resign and look for a new company that offers more positions and responsibilities. As many as 10% of managers and supervisors resigned to obtain higher positions, as well as directors (16%) and executives (15%).
Millennials and Baby Boomers
One of the highlights is how there is a real difference from millennials and baby boomers. Some of the reasons millennials have submitted their resignations are because of being unhappy, reasons for payroll, as well as reasons for seeking promotions. Meanwhile, boomers have a reason to resign because they are looking for companies that apply the same values in the world of work. Then what about generation X? Based on this survey, it was also found that many gen-Xers resigned due to seeking promotions.
In choosing a new job choice, based on a survey, millennials make the decision to choose a new job based on whether they can do more meaningful work. Meanwhile, boomers choose a new job based on a higher income.
What Can Management Do?
Seeing what the results of the survey conducted by PayScale are, there are several things that companies can do to retain their employees.
- Create a general value-based compensation formula.
In simple terms, this can be illustrated by providing compensation in accordance with the measurements made and applied consistently. This can then be stated openly starting from the salary range and the reasons for the figures being given.
- Give a special package to the stars.
The existence of a compensation formula does not mean eliminating any special treatment for the stars because they must get an award. It is true, rewards do not have to be material, but nevertheless it cannot be denied that you must retain your best people.