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Slowing Economy Won't Protect Employers from Turnover According to Survey
This entry was posted on 3/11/2008 12:00 PM and is filed under Management.
WALTHAM, Mass.,
March 10, 2008: Salary.com, Inc., a leading provider of
on-demand compensation and talent management solutions, today unveiled results
from its third annual Job Satisfaction and Retention Survey. Despite fears of recession, more than half of
the 7,000 employees surveyed are likely to intensify their job search in the
next three months. This percentage is
slowly decreasing; in 2006 nearly 65% of employees surveyed were actively looking
and in 2007 just over 60% of employees said they planned to look for a new job
in the next three months.
"Job satisfaction varies from person to person and is
based on many different factors," said Bill Coleman, chief compensation
officer, Salary.com. "In the wake of a possible recession, employees may
be looking for a new job but won't make a move unless they receive a good offer
from a stable employer. It's important to keep in mind that compensation may be
a key factor as to why employees would consider leaving a job but it's not the
top reason they stay in their current job."
The 2007/2008 Job Satisfaction & Retention Survey
revealed many other interesting results, including that inadequate compensation
is the top reason employees gave as to why they would leave their job:
The Top 5 Reasons for Leaving a Job as Reported by Employees
1. Inadequate compensation: 27%
2. Lack of career advancement: 19%
3. Insufficient recognition: 17%
4. Boredom: 11%
5. No professional development: 11%
Thirty-eight percent of employees would need a competitive
offer of 16- 30% to consider moving to a different organization. Seventeen
percent would expect 31% or more.
Fifty percent of employers surveyed feel a job offer with an
8%- 15% salary increase from a competitor would be enough to lure away current
employees. Yet on average, employers are willing to give an average raise of just
7% to entice employees to stay.
Not surprisingly, employers are aware of the high costs
associated with replacing workers due to turnover. Employers across all
industries estimate the cost to replace a typical employee due to turnover to
average approximately $21,000. Some industries estimate recruitment costs to be
well above that figure. Representatives from the Biotech industry estimate
replacement costs to run more than $46,000, followed by Aerospace and Defense
at over $30,000, Energy and Utilities at slightly over $28,000, and Retail
services at $27,545.
The 2007/2008 Job Satisfaction & Retention Survey also
illustrated some interesting trends along gender lines. Women place a higher
importance on desirable working hours and relationships with managers and
co-workers while men list attractive compensation as the most important factor
in job satisfaction:
Women vs. Men: Top 5
Reasons for Staying In a Job
Women Men
Relationship with co-workers 28% 22%
Relationship with
manager 27% 22%
Desirable working
hours 26% 18%
Attractive benefits 22% 18%
Attractive
compensation 16% 27%
2007/2008 Job Satisfaction and Retention Survey Methodology
Salary.com invited a cross-section of individual employees
and business representatives from across America
to participate in its 2007/2008 Employee Satisfaction and Retention Survey.
Prospective participants received an email containing the survey questionnaire.
Participants completed as many sections of the survey as they desired, and then
submitted their results to Salary.com electronically.
Salary.com compensation professionals reviewed the data for
consistency and accuracy and excluded data that appeared to be invalid. A total
of 7,482 individuals and 245 human resource or other company representatives
responded to our survey. Among the individual employee respondents, 7,101 were
employed and provided valid responses to the survey questions — the remaining
381 were excluded from all analysis.
Recipients of this report will find it impossible to discern
the data contribution of any individual or company. Submissions were aggregated
with data submitted by similar groups before results were calculated. Each
numerical result reported in this document is based on data submitted by at
least five (and often many more) separate respondents. This conservative
approach is designed to protect participant confidentiality, and is consistent
with the "laceName>SafelaceName> laceType>HarborlaceType>"
guidelines adopted by the U.S. Department of Justice and the U.S. Federal Trade
Commission.
About Salary.com, Inc.
Salary.com is a leading provider of on-demand compensation
and talent management solutions helping businesses and individuals manage pay
and performance. Salary.com provides companies of all sizes comprehensive on-
demand software applications that are tightly integrated with its own
proprietary compensation data sets, thereby automating the essential elements
of the compensation management process and significantly improving the
effectiveness of its clients' compensation spend.
Source: Salary.com, Inc. and PRNewswire-FirstCall
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