Fact or Myth? Employees Move Companies to Increase Salary

It’s little secret that our salary doesn’t stretch as far we’d like it to. It easy to see why employees feel like they’re making less every year. And while there is no shortage of contributing factors to this widely held belief, the most common is this: staying at the same company for more than two years will cost employees, financially.

In fact, a majority of the workforce believe that they’ll earn less over a ten year period by staying put.

But despite being so commonly believed, there’s little to back up the myth. National payroll administrators ADP found that employees who remained at their previous employers for between three and five years actually had a higher raise when switching jobs, at a rate of 8.3 percent. While the overall salary increase in 2015 was just 3 percent.

Switching jobs can seem lucrative, but it’s not always the best move, particularly if you’ve only been at your current position for a year or two. In these cases the average salary, according to ADP, was just 2.7 percent.

Contributing Factors

Employee turnover is expensive costing employers roughly 21 percent of the employee’s annual salary. And when it comes to employee retention, more than money is in play.

Stagnation

Regardless of salary, employees are more likely to leave their position if their role stagnates. When employees are unable to see a clear progression from their current position to a better job within the company, they eventually look for positions elsewhere.

Culture

In addition to stagnation, workplace culture is another contributing factor when it comes to employee retention. There are countless studies available demonstrating the benefits of a positive workplace culture. Employees will often move to companies that offer the same financial compensation but provide a better overall workplace culture.

More Than Salary

When it comes to keeping your best employees around, competitive remuneration is a good start, but rewarding loyalty with other perks can prove to be very lucrative for current and potential staff.

Defined Career Path

A clearly defined career path will improve current staff retention, build employee morale and help you bring in junior talent that will keep your business ahead of the curve.

Flexibility in the Workplace

A little workplace flexibility can go a very long way when it comes to keeping employees happy while on the job. By developing flexible scheduling options you can help cultivate a desirable workplace culture that has potential candidates lining up to work with you.

Your specialized staffing partner has a passion for your industry. Because they specialize they not only know the players, but they know where to turn to find the best talent.

If you’re having troubling finding top talent, reach out to the professional recruiting team at Morris Bixby today and find out how they can put their industry expertise to work for you.

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