Be prepared for a talent exodus from your business in the coming months. That’s the underlying message from Investors in People's (IIP) Job Exodus Trends Report for 2017. Nearly 6 out of 10 people are thinking about moving jobs this year, representing a rise of 10% on last year. A quarter of employees have already begun their job search according to IIP.
High levels of employee dissatisfaction are the result of a combination of factors, three of which we have highlighted below. Will these classic employer fails prompt a talent exodus in your organisation?
Pay is the reason given by over half of UK employees for their job search in IIP's report. It’s not the only time that financial issues have made the headlines during this week. A new survey from the CIPD found that one in four employees aren’t focused on their jobs because of money worries. 18-24 year olds and people living in London are most affected. These are fundamental issues for employers and in the light of the negative publicity over Fat Cat Wednesday last week should be regarded as a priority. In 2016, one fifth of workers were not paid on time by their employers. The CIPD has called on employers to consider the impact of financial concern on employee health, happiness and productivity. For SMEs unable to increase employee pay or organisations who are limited by pay structures, flexible working is a viable alternative. Over a third of employees said they would choose flexible working over a 3% pay rise.
Rigid workplace structure
The Institute of Leadership and Management (ILM) revealed that over half of all workers feel trapped by their current working environment and inflexible company structure. Creating a sense of wellbeing in your working environment is critical to your business performance. The survey found that employees want more freedom and flexibility in their work, coupled with the autonomy to be innovative and creative in their jobs. Only a quarter of employees believe their boss ‘definitely fosters collaboration’, however and over half would consider leaving their jobs if the situation remains unchanged. Review your recruitment metrics to evaluate your attrition levels – a pattern which reveals an upward trend indicates problems with either your hiring process or employee satisfaction levels (or both).
No job security
Job security is the number one concern for today’s employees and recent developments have reflected this concern. The CIPD has urged businesses to review their employment practices after a bike courier won her case to be classed as a ‘worker’ rather than an ‘independent contractor’ by logistics company City Sprint. 900,000 people in the UK (2.9% of the total workforce) are now employed on zero hours contracts while the average worker earns 50% more per hour than 'zero hours' workers. Of those who fall within the broad umbrella described as the gig economy, 14% are ‘reluctants’ who would prefer traditional employment while 16% are ‘financially strapped’, taking on independent work out of necessity. Issues around job security will persist until a clear differentiation is made between ‘flexible talent’ positions and zero hours contracts. High levels of zero hours contracts also lead to increased stress for employees. Could your company change its policy to improve job security for your employees?
Evaluating your flight risks
HR analytics can help you to identify the people in your organisation who may be a flight risk. In addition to the annual January job seeker surge, the following events are more likely to prompt a job search:-
- The date of an individual's work anniversary.
- Personal milestones (reaching the age of 40 or 50 – job searches also rise by 12% before employee birthdays).
- When comparing their progress with their peers.
Review the data in your recruitment software to identify the people who are a flight risk in your organisation.
Don't fail your employees. Support your business with recruitment software used by some of the world's leading organisations. Contact Advorto today.
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