HR Review recently reported the news that up to one in three employees will change jobs if they do not receive a pay rise in 2015. This week, we look at what motivates people to leave their jobs: is it simply the money or does personal happiness play a part in making these decisions?
The Glassdoor Survey
Glassdoor is an online community for jobs and careers and a recent survey of UK employees has startling results about just how many people are willing to leave their jobs if they do not receive the pay rise they are expecting. The study, titled Glassdoor UK Employment Confidence Survey, questioned a number of employees about a range of aspects which contribute to worker confidence including: job security, chance of re-hire, salary expectations and optimism of their business’ outlook. The results of the survey showed that just over 30% of UK workers expect a boost in pay this year, with 58% expecting that raise to be above 2%.
Although the prospect of a pay increase is not impossible, the 2% rate expected by so many employees is four times the current rate of inflation, which makes it an unlikely percentage for employers to reach. This being said, employees are now more confident in terms of the prospects of their business, with 30% believing they would be able to find a position that suited their experience within six months of leaving their old job.
Large Percentage of Leavers
The future for many employees could lie within new positions as 39% would like to move on to something else should they not receive the pay rise they are expecting. Although this is not entirely unexpected, the cost to employers should a large majority of people leave could be enormous; the average cost when filling a vacant position is up to £30,000, which covers salary costs and the loss of productivity whilst the job is vacant or while new employees are being trained.
For instance, if all 39% of employees left their jobs to look for something new, the total cost to the economy could be as much as £360billion. Although it is unlikely that every single person will go, it does serve as a reminder that employee engagement and offering desirable future prospects are huge aspects in retaining a happy and loyal team.
It appears as though there has been a notable shift in the minds of employees who no longer need to feel entirely appreciative to have a job. The recovering economy has meant that there are jobs available and workers need not stay in a job that does not offer them what they truly want. In previously uncertain years, employees perhaps felt lucky to be working, however things have now changed and individuals are able to be far more discerning with their employment choices. This calls for a deeper understanding of employee needs and expectations, not just from a business standpoint but also in terms of emotions, aspirations and personal happiness. If the money is not good enough for them to stay and the perks are not as good as other companies’, employers may struggle to keep staff who now have a whole range of choices.