Job-Hopping on the Rise
Today’s labor market is marked by a shortage of talent and many new job options. These factors enable younger employees to pick their spots and social media has accelerated the job-hopping process. Employee retention is now a serious issue for most companies. According to Grant Thornton Consulting, about 68.9 million American workers left their jobs in 2021 — 70% of them voluntarily. The company also reports that over 20% of American workers took a new position in the last year. Forty percent of those are already looking for new jobs.
What Motivates a Move?
Additionally, to address the issue of job retention within your company, you need to understand what motivates the movers. Here are some of the primary reasons for changing jobs today.
Advancement opportunity – Careers are no longer linear. Today, the quickest way up the ladder is with a job change and social media makes that fast and easy. Finding a new job is often more expedient than asking for a promotion. Many times the next step in an organization is limited by the positions available and employees may choose not to wait.
Company loyalty – Companies are no longer seen as being loyal to their workers. In recessionary times, through reorganizations, and as a result of corporate buyouts, the Y and Z generations saw their parents laid off. As a result, Gen Y and Z workers try to build their own unique career paths by moving on before someone moves them out.
Salary increases – Zippia, an online recruitment services provider, reported that in 2022 the average salary increase when changing jobs was 14.8% while wage growth was 5.8%. Today, it is often easier to switch jobs for a hefty pay increase than to ask your boss for a raise.
Better culture – A top reason why people change jobs is to be part of a better work culture. According to Shelby Palmeri of CareerPlug, 72% of employees surveyed reported leaving a job because of a toxic workplace. 51% said they plan on leaving their current job for the same reason.
More perks – The younger generations are looking for a good life/work balance —more personal time off, a shorter time to earn it, and perks. Company matching contributions to 401K saving programs, student loans retirements, flexible hours, and work-from-home are options new workers are seeking.
Work on retention
Lastly, examine your company’s culture carefully to identify weak spots in job retention. Provide competitive compensation packages and clear career path opportunities. The best way to build loyalty and prevent job-hopping is to value your workers.