People are on the move

People are on the move

​The current job market, characterised by a surplus of job candidates, has caused concern for employers seeking to attract and retain top talent. Over the past year, 61% have reported difficulty keeping employees due to high attrition.

According to 47% of employers, pay is the leading cause of employee turnover. However, other factors such as opportunities for career advancement (28%) and work-life balance (22%), location/commuting (14%), and flexibility (5%) also play a role in employees' decisions to leave their current positions. According to employers, lifestyle-related factors account for 41% of employee turnover.

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What do employees say?

Among the 47% of people considering a job change within the next year, the top two reasons for making a move are better compensation and career advancement opportunities. Additionally, 21.5% of employees cite lifestyle factors, such as work-life balance, location & commuting, and flexibility, as reasons for considering a change.

Lifestyle factors and career advancement opportunities are among the key non-financial reasons people consider changing jobs in the next 12 months. To retain their workforce, employers must be aware of these drivers and address them in time.

While some employees are considering a job change, others are content with their current positions. 28% of employees are happy to stay in their current roles, the primary reason being reasonable compensation. Other factors contributing to their satisfaction include career advancement opportunities (26%), work-life balance (18%), job security, flexible working arrangements, and meaningful and stimulating work. Employees who feel that their basic needs are met, have job security and find their work environment enjoyable and their job to be challenging are less likely to seek a change.

Factors such as business stability, growth, social capital, and work environment can play a significant role in retaining employees. Employers should communicate the organisation's direction transparently, particularly if employees have concerns about job security in light of economic uncertainty. Strong workplace relationships and flexible teams can also help to reduce attrition, as employees who feel connected to their colleagues and less stressed are less likely to seek new opportunities.

• Other important considerations to increase retention are:

• Ensuring employees have a good work/life balance.

• Opportunities for internal advancement.

• Reducing the number of 'mundane' tasks.

How to efficiently implement changes and reduce attrition

The key takeaway from the Cpl surveys on employee retention is that each person has unique needs, and a one-size-fits-all approach will not be effective. Employers need to cater to the needs of their employees at a granular level while also considering their performance. By focusing on the team level, organisations can meet their employees' personal needs without disrupting the performance. To do this, they should empower independent leaders to customise how their teams work and manage workload, allowing them to set team-specific flexible working policies. This change can help address the main reasons employees stay in their roles and ensure they are both happy and productive.

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