Employees ready to resign
Unwanted employee resignations can be a real pain point for businesses. Employment Hero recently surveyed 1000 New Zealanders and found over half were considering a job change within the next 12 months. Specifically, 40% had plans in place to move and 20% reported they were currently looking. You may not be surprised to discover younger workers were particularly interested in changing jobs. Employees aged 25-34 were the most likely to change roles, with 67% saying they plan on finding a new job in the next 12 months. Younger workers also appear to be more proactive about job hunting; 39% of 25 – 34 year olds said they have spoken to a recruiter in the last six months!
Pay rises matter
The data points to stagnant salaries as the main reason for employees wanting to move, with 37% identifying a lack of pay rise as the top factor. This was followed by limited career opportunities and a lack of recognition. Women were 21% more likely than men to choose pay as the main motivating factor to be looking for new jobs. Moreover, 62% of women said a salary increase would encourage them to stay put.
These are remarkable statistics and perhaps the sample size would make a statistician think twice before offering pay rises across the board! But with our talent-short market, and the COVID winds buffeting us around as they are, we thought it was worth highlighting this research.
What motivates your employees?
So how do you prevent those unwanted resignations? Think about what you can do to help motivate your staff and keep them loyal. For example, can you possibly redirect some finance toward your staff in recognition of these tough times we are living in? Without prejudicing your workflow or bottom line, is there anything you can do to make your staff enjoy their jobs more? Research has shown repeatedly that career pathways (i.e. the prospect of career progression) boost engagement and loyalty, and small acts of appreciation and regular reinforcement can be powerful. Reaching out and connecting with your staff will help them feel .. connected.
30% of the surveyed workers were seeking new roles because they felt underappreciated. If you think you may not have a culture of recognition in your business (and this is notoriously difficult to see from the inside out), this should be high on the agenda over the next critical six months.
Contact us if you would like any ideas around all this – we are here to help. As with many other HR issues, prevention is a whole lot more beautiful than trying to find a cure.