In the American labor market of 2017, organizations must work hard to hold on to staff members, or risk having them leave, according to a new survey.
Nearly two of every three employees at mid-sized organizations are open to leaving for a different job, according to a new survey from the ADP Research Institute. While a 13 percent of respondents said more pay alone would be enough to trigger a move, 46 percent said they’d think about a different job at the current salary or even for less money, given that other expectations were met.
Organizations, already having a difficult time locating new talent, also have to concentrate on keeping the staff members they have, with the jobless rate at its lowest since 2007. This conclusion was recently bolstered by three other reports that stated: unemployment claims hit a four-decade low recently; job openings hit an eight-month peak in March; and the percentage of small companies mentioning job openings as difficult to fill was the highest since 2000.
The ADP survey also found 17 percent of employees are actively looking for a new job and 46 percent said they would think about moving if an attractive offer came along. This means 63 percent of the staff at any given company are open to leaving, according to the survey, which was conducted in September 2016.
ADP also talked to employers for its survey and found organizations have only a partial understanding of how much of their workforce could be lost to competition or other industries. Companies in the survey overestimated the proportion of active job searchers, and underestimated the proportion of those who were passively on the lookout for a better opportunity.
The consequences of full employment
Job seekers aren’t sitting on their hands these days either. In total, 27 percent of employee respondents said they had changed jobs in the past year, the most significant share since ADP started the survey series in 2014.
The US is in the vicinity of full employment, one good reason why Federal Reserve policy makers, who track job-market churn, announced higher interest rates in June. Nevertheless, pay growth remains fairly modest. Hourly pay adjusted for inflation rose 0.4 percent in the 12 months through April, according to the Labor Department.
Evidently, the tight labor market is generating a gap between what workers want and what organizations are selling. Sooner or later, however, employees in America could see heavier paychecks.
Holding onto employees
For some respondents, an improved work-life balance and possibilities for quick advancement would be among the benefits that might cause someone to move to a different company, even if the new pay package is similar to their current one.
Employees are motivated by more than work-life balance and career opportunities. If you’re currently looking to step up your employee retention efforts, you should start by talking to them and finding out what other factors could lead to their long-term employment with the company. You might be surprised by what you hear.
At NSC Technologies, we have provided our client companies with staffing solutions in all kinds of job markets. Please contact us if your company is interested in reaching its goals by leveraging one of our custom staffing solutions.