Non-monetary elements rank top when it comes to employee retention
The times have changed and in this new age, employees seem to have the upper hand. Since the pandemic has subsided for a while, high attrition is a major concern across sectors. HRs are looking for that silver bullet which can control the high attrition levels. As a common approach, giving a raise to the employee seemed to be a solution to control attrition. But surprisingly, money is not the number one reason why an employee would want to stay in a company. So, what do employees want?
As per multiple researches, it is established that purpose, being valued, being happy with the job, stability at job, work/life balance and many more non-monetary factors are some top reasons why people want to stay in a company.
Several factors contribute to an employee’s desire to stay in a company, but a higher salary is not one of them, according to a recent report by Adecco Group.
Happiness at work
As per the Adecco research, every four out of 10 has faced burnout at work. Due to excessive work stress, wellness of employees has gone for a toss. Mental and physical wellbeing of employees is vital. As per the report, 40% employees want happiness at work which can come by taking steps addressing mental and physical wellbeing of employees. Apart from that, Happiness at work is a far greater topic in itself. So there are multiple reasons which can create more happiness at work which the employer can evaluate through internal studies.
Stability at work
38% of employees value stability at work more than their salary. The pandemic took a lot of jobs. Many businesses were shut. So, stability is something that people are looking at. There has been multiple research which states that stability at work is a major factor for employees to choose their employer. This point makes sense since we are seeing a string of mass layoffs globally.
Work life balance has become more important to employees in the post-pandemic era, as they value a life outside of work. As per Adecco Group report, 35% employees will stay with a company if they get better work-life-balance. In a Gartner report published in 2022, 65% of employees globally strongly agree that they value things outside of their job after the pandemic.
Enjoy working with colleagues
31% of employees who have good relationships with their coworkers are more likely to stay in the organization. Emotional bonds and friendships at the workplace play a stronger role in enhancing retention in the organisation.
Flexibility at work
Post the pandemic, work from home and hybrid models have become really popular with employees. Such perks at the workplace will help organisations to increase employee retention levels and stickiness in employees. As per the report, 23% of employees look for flexibility at work.
Among the top five reasons for employee retention, the Adecco report cites salaries as the sixth.
While monetary rewards and benefits are not going away, employers will have to offer more non-monetary benefits and perks which are valued by the employees. Since employees are re-evaluating their priorities, the employers will have to re-evaluate their rewards and recognition strategy as well.
Kartikay Kashyap is a former journalist and a feature writer who carries more than 3 years of experience in covering HR and employer-employee relationship issues amongst the corporate in India for digital and print media. Currently, he is part of the content and marketing team at Advantage Club as a senior content writer.