So, why do employees change jobs? It’s complicated. There is no one size fits all answer. Many people are looking for an opportunity to grow their skills at work. They may feel stuck. But, more than that, they may feel unhappy. They may feel unrecognized. They may even feel mistreated.
In the past, it could be said that money would not be the primary reason to leave a job. Employees were more concerned with their fulfillment. But, after the last five years, more employees are concerned about money – which makes sense. Prices have gone up, from groceries and gas to housing. Interest rates are up. And, pay has been going up.
Your loyal employees have not benefitted from these big jumps in pay. While their bills have gone up, their pay has stayed about the same. Many companies continue to believe that an annual three percent per year raise will maintain the standard of living employees are used to. This is not the case.
As well-meaning as companies may be, tiny raises are just not enough. Younger employees, and parents are hit extra hard. Younger employees are struggling with increasing rents and expenses. Many twenty somethings are being forced to live at home for longer than prior generations. Employees with children are balancing the cost of rising childcare with their flat wages.
This can put both employees and the companies they work for in a difficult situation. The employee is forced to move to potentially less fulfilling job in order to be paid the current market rate.
And, the employer also faces a difficult situation. When the employee leaves, their role is left empty for a period of time. That puts pressure on the remaining employees, to pick up the extra work. Then, the company must find a new, qualified candidate. They must pay an internal recruiter or an external placement firm to find candidates. The company must go through the process of interviewing those candidates. When a candidate is selected, they must be trained. Not surprisingly, the new candidate will likely be paid the current market rate.
So, what is a company to do? First, don’t wait for your best employees to leave. If you know they are underpaid, so do they. Just because they don’t bring it up doesn’t mean they aren’t aware of the going rate. Keep an open door policy for conversations around compensation. And, when someone brings it up, be willing to have honest conversations. And, advocate for them. In the long term, it may very well save you time and money. It could even help you to retain great talent.
I hope these tips have helped you. Visit CopelandCoaching.com to find more tips to improve your job search. If I can be of assistance to you, don’t hesitate to reach out to me here.
Happy hunting!
Angela Copeland
@CopelandCoach
