In looking through 2019 1H research studies here the top three drivers of employee attrition: compensation, career development opportunities and people management. Compensation has leaped into the number one position now. That should be very alarming for HR professionals.
HR should put renewed (or additional) focus attention in these areas and have strategic initiatives to deal with them.
Compensation is tricky. Employees are figuring out their worth and leveraging it to job hop. Organizations are overpaying for talent because they aren’t developing employees, poor employee engagement and experience and people managers don’t have the necessary skills to manage their employees.
All three of these go hand-in-hand. It’s not hard to see the linkages.
Compensation has vaulted into the number reason employees quit. That shows even less loyalty and engagement because money trumps everything else. That’s not the case for employees who love their jobs. But it is the case for those below that level.
Compensation really isn’t the issue. The above items go back to poor engagement, culture, teamwork, trust, psychological safety and other fundamentals that are broken. These are the real root causes.
It’s why it’s NOT getting better because it’s not being adequately addressed. It’s Ground Hog Day in 2019 like it was in 2018.
The solutions are much less expensive to deal with the root causes versus the leaves on the trees.