If you want to keep your best employees, pay them more money: Both employees and employers say the top reason quality workers quit their jobs is because they aren't getting paid enough or aren't provided enough quality benefits, according to a new study.
Today's stronger hiring climate means employees who don't feel well compensated may be more willing to look for a new, better-paying job, said Paul McDonald, senior executive director at Robert Half, which conducted the study.
"Managers should regularly benchmark salaries against those of other companies in their region and industry to ensure they are at or above market standards," McDonald said in a statement. "While many factors contribute to turnover, competitive pay and benefits can be the difference when it comes to retaining skilled talent."
However, money and benefits aren't the only reasons good employees quit their jobs. The employees and executives surveyed cited limited opportunities for advancement, unhappiness with management, being overworked, not getting enough recognition and being bored with their job as other top reasons why workers quit their jobs. [10 Signs Your Employee Is Ready to Quit ]
"Managers also need to focus on offering advancement opportunities and fostering a supportive workplace," McDonald said. "Businesses lacking in these areas — or any of those that create a positive work experience — are likely to find a higher salary alone won't keep talented professionals from leaving."
If you're making any of these five mistakes, you could end up losing your best employees to a new employer, according to Robert Half:
- Career paths aren't clear. If you aren't providing a clear career map, your employees might not feel they have a reason to stay with you. In order to develop a sense of loyalty and commitment from your staff, show them how you see them growing within your organization. Spend time working with each employee to identify potential advancement opportunities and the resources they'll need to pursue them.
- You don't provide training. Career development training is a way to help employees feel more engaged and supported. Not having skill building tools, mentorships and continuing education opportunities can easily hurt your chances of grooming and holding on to future leaders.
- You're not customizing recognition. Since each employee has his or her own motivations and needs, a one-size-fits-all recognition program probably isn't the best way to go. Try offering rewards that can be personalized to each employee as much as possible. Additionally, a simple "thank you" for a job well done is also an important step to ensure employees know their work is valued.
- You're not listening. Oftentimes, employees leave an organization because they think they don't have a voice that matters. It is critical tolisten to employees so they know they are heard and then act on their good ideas.
- You don't track retention stats. Your company will continue to lose out on quality employees if you aren't measuring employee quit rates and determining the managers that are better at retaining workers. By identifying managers who do and don't retain their best people, businesses can get a better understanding of what makes an effective leader and provide training to those who aren't measuring up.
The study was based on surveys of more than 2,100 chief financial officers from a random sample of companies in more than 20 of the largest U.S. markets and 300 employees who work in an office environment in the United States.
Originally published on Business News Daily.