Love Your Job? Most Don’t. Here’s Why.
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Do you love your job? Do you love it so much you would not leave your employer for any reason? If so, you are in the minority. According to a recent survey by Yoh, only 28% of employees say they love their job with a loyalty so strong they would not leave under any circumstance. However, at the opposite end of the spectrum, Yoh reports that 1 in 7 employees (14%) would like to leave their current job for a new one in the next 12 months.
If that percentage sounds reasonable, consider this: in a company with 100 employees, 14 could be on the move in the short term; in a 500-employee workforce, that number swells to 70 who are eager to leave. Could your company handle such a mass exodus? If not, consider these critical factors that impact job satisfaction and loyalty:
Compensation
Compensation is one of the biggest reasons employees seek other opportunities. While many workers were okay with their starting salaries, they can become dissatisfied with subsequent pay raises. Compounding the dissatisfaction is the fact that many workers lost ground to inflation in the last couple of years. Only now, in 2024, are salary increases projected to exceed inflation, regaining some – if not all – of the lost ground.
Employee compensation is an ever-shifting economic landscape. For example, Google recently provided a 300% salary hike to retain top talent even as they concurrently cut thousands of jobs. This shows the war for top talent is still on! Even if your company cannot lead the compensation narrative in your marketplace, you must be competitive to survive.
Lack of Career Success
Gone are the days of working for an employer for 10 or 20 years. In fact, many employees feel that remaining loyal stifles their career success and they must move on. Employers who recognize and address dynamic career movement are more likely to retain employees longer. Remember that not all career moves have to be up; lateral moves can benefit both the organization and the worker. Knowing success paths for each position – inside and outside the organization – can empower companies to make the right moves to retain key talent.
Effective Management
People leave their manager, not their companies. This has been true for years but its impact is only now being widely recognized. According to recent SHRM research, 92% of HR executives say people managers are critical for the organization’s overall success. US workers who report to highly effective people managers tend to be satisfied with their job, remain deeply committed to their organization, and are not actively searching for a new job. However, the research further reported that only 64% of US workers rate their managers as “highly effective.” Unfortunately, companies can lose many employees before taking action to enhance management-level skills and staffing.
To succeed, people managers need proper skills training along with clear workplace policies and practices. According to SHRM, the critical workplace practices managers need include clear role expectations, structured goal setting with performance metrics, open and productive communication channels, regular performance evaluations and feedback sessions, and access to resources and tools to enhance their managerial effectiveness.
Generational Differences
Generation diversity is the new normal in the workforce. We now have up to five working generations who have unique needs and expectations for compensation, benefits, work/life balance, and career growth. It can be a challenge for an employer to meet all of these different generational needs. The good news is that older employees remain more loyal to their employers and say they love their job. What’s more, according to Yoh, college graduates also are more likely to be satisfied with their job and more loyal to the company.
Younger generations, on the other hand, are more likely to talk about their pay in the workplace. This underscores the importance of competitive compensation, pay equity, and pay transparency. The newest Generation, Gen Z, is also less likely to put up with bad managers or bad managerial behavior. Again, workers quit their managers, not their companies. This is why effective managers (and their development) are so important. Gen Z workers and managers also tend to demand clear expectations and feedback.
The bottom line is this: Employee dissatisfaction and turnover are incredibly damaging to an organization – functionally, reputationally, and financially. But by recognizing and addressing critical factors, employers can make it easier for more workers to love their jobs and remain loyal.
Cassandra Faurote is the CEO of Total Reward Solutions, a compensation consulting firm and author of Compensation Sense 101: Common Sense Answers to Your Questions About Employee Compensation and Total Rewards. Reach her at cassandra@totalrsolutions.com.