Benefits and Salary Not Enough to Counter Turnover
In a new survey, the American Psychological Association found that 67 percent of employees remain with their employer thanks to a satisfactory “work/life fit,” more than those who stay for salary (59 percent) or benefits (60 percent). The findings come as most companies are struggling to find and keep mission-critical employees, with 61 percent having trouble hiring these employees and half are having difficulties with retention.
A growing set of employers are also beginning to report problems with employee engagement. Nearly one quarter of employers reported engagement-level decreases in 2012, up from 13 percent in 2010. Also, 60 percent of organizations anticipate a rise in voluntary turnover as the job market and economy improve.
The Mercer 2012 Attraction and Retention Survey delved into the ways companies have gone about addressing engagement and turnover issues within the past year. The report found that nearly all organizations (95 percent) offered types of merit-based pay increases during the year. Employers also implemented a variety of non-cash rewards including:
• Communicating total reward value to workers (25 percent of firms);
• Boosting work experience through the use of social media (25 percent);
• Offering formalized career paths (22 percent);
• Internal/external training opportunities (22 percent); and
• Recognition initiatives leading to special employee rewards (22 percent).