Compensation Still a Main Reason Why Employees Leave in 2018

Mar 06, 2018
| Michael Altiero
Why do employees leave their jobs in 2018

A common question all employers like to find an answer to is “why do my employees leave the company?” Numerous studies and research have gone into this question, each with their own parameters and criteria.

The results from these surveys tend to show similar patterns and reasons, with varying degrees of differences. 

Recently, an informal poll was posted by Sharlyn Lauby, also known as the HR Bartender. Sharlyn is an HR industry influencer, consultant, and blogger who writes for her own site (HR Bartender) as well as many industry publications, such as SHRM.

After reading some research herself, Sharlyn decided to put together a poll to see what results she would get to this important employer question. While she admits that her survey was short and unscientific, her results are still important to note, as her website and blog generate a lot of viewers and social media engagements.

Let’s take a closer look at the results from the HR Bartender poll.
 

Why Do Employees Leave Their Organizations in 2018?

In late January, Sharlyn created a blog post and poll aimed at exploring the reasons why employees leave their roles and companies. Published to her HR Bartender blog, the article and poll received a good amount of engagement throughout social media.

The survey contained only one question: “If you were to start looking for a new job today, what would be the number one reason to leave?

The article was shared on social media for a few weeks, as the poll began to accumulate responses. Then, in mid-February, a follow-up article was published on the HR Bartender blog that showed the results from the poll.

The poll revealed that the number one reason why employees leave their companies in 2018 is for better compensation and benefits, coming in at 24% of responses.

There were five other answers that were collected from the HR Bartender poll:
 
  • Increased opportunities for advancement (21%)
  • Flexible work schedule (20%)
  • More supportive manager (20%)
  • Some other reason (12%)
  • Better training and development (3%)

Not far behind compensation and benefits came “increased opportunities for advancement”, while “flexible work schedule” and “more supportive manager” came in tied.
 

Compensation and Employee Benefits Still Matter Most to Employees

The results from the HR Bartender poll show that compensation and benefits are still extremely valuable to the workforce as we move through 2018. They also play a vital role in employee retention and recruitment. As a matter of fact, competitors are likely to use their total compensation offerings and employee benefit packages to try to lure employees away from their current companies.

This is why it is important for employers, especially small business owners, to keep up with survey’s like this one. As mentioned before, larger studies conducted by major organizations (such as SHRM) have found similar results.

Employees value their compensation and view it as a key motivator when deciding whether to stay with their current company, or explore new opportunities that offer what they are seeking. If an employee feels undervalued from a salary standpoint, or their company is offering inadequate benefits, they will be more likely to leave.
 

What Does This Mean for Small Employers?

Offering competitive compensation can become a challenge for some small businesses, who risk losing top-performers to much larger companies. For small employers to better compete with larger companies for top talent, and retain current employees, they need to re-evaluate their compensation and benefits plans.

However, small employers shouldn’t ignore the other survey responses. Advancement opportunities, supportive management/managers, and flexible work schedules are all critical to employee retention in 2018.

As Sharlyn says, “In some way, I can see all of these reasons being interrelated.”

Despite these challenges, many smaller employers are trying to implement these practices (and ones like them) into their businesses in order to keep up with the expectations and desires of today’s workforce.
 

Small Employers Can Help Lower Turnover Through Better Employee Benefits

While offering substantially higher salaries and providing sufficient advancement opportunities can be difficult for smaller businesses, employee benefits provide a way for employers to keep current employees happy and engaged.

Small business leaders today have many resources to help provide quality benefits to their workforce, in some cases while even saving money.

Through strategic partnerships, large-group quantity and quality benefits can be accessed by small employers to help prevent employees from leaving. Not to mention, these kinds of employee benefits can be extremely valuable to help with recruiting and company growth!

What’s the difference between co-employment and employee leasing? Check out our eBook, Co-Employment vs. Employee Leasing: The Differences Brokers (and Clients) Should Know, to learn more about how different they really are!

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