People work for money because it is needed to survive. Moreover, it can allow them to live the life of their dreams. It’s safe to say that at some level, money is what most, if not all people, desire.
It can be understandable if one would think that paying a decent amount of money can be enough to keep employees. After all, employees work for money. While it can affect their performance and commitment to an organization, money is not enough to employees.
In fact, money is not even the main reason why employees leave or stay at their jobs. Studies and research have proven that workers seldom leave because of money.
This is important to know to understand what can improve employee retention and what motivates them to leave. If it’s not money, then what?
Do Employees Leave for Better Paying Jobs?
How much do you think is the percentage of employees leaving because of money? 89% of employers believe workers leave because of financial reasons. This is from a study conducted by Officevibe.
However, the same study showed that only 25% of employees leave because of money. Money matters but is not a major problem. Research has also proven that employees are willing to take a pay cut to have certain benefits or to have something else that they wanted.
This goes to show that there are other elements that matter more to employees than their income. Here are the statistics:
- According to BusinessWire, 49% of workers paid by the hour are willing to take a reasonable pay cut in exchange for more control over their work schedule.
- According to Randstad US, 60% of employees left their jobs because of bad managers.
- A LinkedIn Survey showed that 1 out of 10 employees would even refuse to work for a top company if it meant enduring a toxic work environment.
To the workers, there are more important things than money. Knowing them can increase your chance to keep employees. It can also improve their engagement, productivity and performance.
So, what’s the true reason why employees leave?
Employees Value Company Culture Over Salary
The main reason why employees stay at their jobs is because of good company culture. Having a positive company culture allows employees to stay happy at work and enjoy the tasks that they do.
Benefits matter more that employees are even willing to take pay cuts to have certain ones like having a more flexible work time. Employees would also avoid working for companies that have a toxic company culture. Here’s a finding from a CornerStone study:
“Good employees are 50 percent more likely to quit when they work with a toxic employee, if the proportion of toxic employees on their team grows by as little as one on a team of 20.”
A recent survey from The Manifest showed that more than 80% of employees would refuse to accept a better paying job if from a company that failed to act against sexual harassment.
As creatures of emotion, we avoid whatever can cause us pain. This includes working for an organization with bad culture. To keep employees, treat them with respect and kindness.
If you treat workers well, it will not only help improve their commitment to the organization but it can also help improve their performance as they become more engaged.
According to Entrepreneur, here are 3 reasons why employees stay even when they are given better offer by other companies:
- They are engaged
- They are respected
- They receive personal treatment
Another part of company culture that plays a huge role in employee retention is recognizing or appreciating the efforts of the workers. It also has a strong link with employee engagement. Here are the statistics:
- According to Businessolver, 93% of employees reported that they would be more willing to stay if they have an empathetic employer.
- According to O.C. Tanner Learning Group, “70% of employees left their jobs because they did not feel they were appreciated enough or at all.
- A research by Gallup showed that 68% of US employees are disengaged. 58% of the participants mentioned that employee recognition can help improve their engagement to the organization.
- According to Socialcast, 69% of employees would work harder if their efforts are better appreciated.
- A study by Cicero Group concluded that 50% of employees believed being thanked by their leaders improved their trust and relationships toward them.
Employee Benefits Matter
Now, millennials are starting to dominate the global workforce population. Estimates by the Pew Research Center showed that by 2025, millennials will make up 75% of the entire workforce population.
This data can’t be ignored and it’s why it is important to know what Millennials look for in a job. Millennials value work/life balance. One of the benefits they look for in a job is being able to work remote or having flexible hours.
One of the top companies that address this issue is Nike. Nike employee benefits include having reduced or flexible hours. The company even offers gym membership and employees enjoy a 50% discount to all Nike products.
Another top company doing this move is the General Electric Company (GE). Part of GE employee benefits is being able to work from home, up to 3 weeks of vacation time, employee discounts, gym membership and more.
There’s more to employee benefits than just being able to work from home and having flexible or reduced hours. Excellent companies offer generous employee benefits because they know that it helps improve employee retention, well-being and performance.
To keep employees, know that decent pay is not enough. The main reason employees stay is not because of money but it’s because they feel that they are appreciated, important and respected.
Thank and appreciate your employees more so they’ll want to be around. Develop a company culture centered on recognition, respect and generosity. Doing this will help improve employee retention.