A LinkedIn retention survey reviewed 32 million profiles to discover why employees keep their jobs.
Why personalized training is the key to hiring and retaining millennials
Investing in digital training tools can help companies attract and retain talent, save money and reach a broader workforce.
Sometimes, when the seemingly elusive is revealed, such a revelation is less of a surprise, but rather a palm-to-forehead moment. In other words, it just makes sense. This is the result of a just-revealed retention study conducted by LinkedIn, in which 32 million profiles (out of 660 million members) were assessed and it was concluded what employees keep loyal and why they stay in their jobs.
The most basic takeaway meals from the LinkedIn report:
Treat employees carefully and well
.
SEE: Hiring kit: Chief diversity officer (TechRepublic Premium)
Does the demand for tech employees keep employers on their toes?
With
tech workers in constant demand
, it is clearly a challenge to keep star workers away from the competition. The data suggests a probability of 76% that an employee is still in the company after a year. After two years it drops to 59% and after three years the number is terribly less than half, 45%.
Justin Black, head of people science at Glint Inc./LinkedIn, said industry competition was less a factor, and added: “In fact, we see the same basic needs expressed in all industries: a sense of fit and belonging, alignment with business objectives, being able to do a great job, making an impact and growing professionally. “
Tech companies are far below the average turnover of the industry
But Black also acknowledged that: “We see many leading technology companies that are well below average business outages. They are capable of creating attractive cultures, because yes, guess what, people care about more than just money. They want jobs that don’t want to work and expand their professional capital. ”
Getting information
The 32 million LinkedIn members whose data are part of the survey have been working since at least 2013 and work for companies with more than 500 employees. Data was collected until July 2019.
LinkedIn compared his study to the calculation of a life insurance company, the ‘survival curve’, which is in fact the probability that you will be alive at some point. LinkedIn applied the calculation to employee retention to discover the chances of someone staying with one company and naming three factors
strongly linked to better preservation
.
Employees who change jobs are more likely to stay (promotion or not)
Greed is apparently good on Wall Street, but change is good in the real working world. Those who change jobs within the company are much more likely to stay than those who stagnate in their original position.
Surprisingly, it apparently makes no difference whether an employee is promoted or laterally transferred to a completely new position. A new position, almost every new position, is linked to greater retention. And what is closely related to retention? Engagement. The concept of career (professional growth and satisfactory career goals) is one of the biggest motivators for engagement, a concept that can be applied anywhere in the world.
The survey found that an employee who holds a PhD for three years has a 70% chance of still being in the company, and someone who moves laterally has a nominal chance of 62%. However, someone who remains in the same position during those three years as he was hired for has only a 45% chance of still working at the same company.
Internal movement is therefore strongly linked to more retention, regardless of whether the movement is lateral or senior. This supports the “tours of duty” concept, popularized by co-founder of LinkedIn Reid Hoffman, in which employees repeatedly take on new functions in a company to gain operational experience in multiple areas.
People want to be on the move and feel that they have a trajectory ahead, and apparently even a sideways movement indicates a positive change. Don’t let your employees stagnate.
Companies with highly regarded management saw a better retention
“Those in the talent room have heard this truth a thousand times: people don’t quit their job,
they stopped their managers
, “noted a LinkedIn representative in a release.” Our data seems to confirm that. ”
LinkedIn interviewed its members about companies they have worked with or collaborated with and was asked to rate the company on 14 employer value propositions (EPPs), including ‘a good balance between work and private life’ and ‘a goal-oriented mission’.
Companies that scored high, in the top 5%, for “open and effective management” saw a considerably greater retention. For companies with low management scores (lower 5%), there was only a 32% chance of an employee who held for three years.
Managers set the tone, facilitate the atmosphere, and create the office culture. Managers are important. Managers really matter. People are more inclined to make situational choices than money. Yes, you read that right. LinkedIn cites a 2017 study that found that 56% of employees would refuse a 10% increase to stay with a great boss.
Similarly, Research, published in the Harvard Business Review in 2017, investigated eight management behaviors, including:
- recognize excellence
- achieve challenging but achievable goals
- sharing information widely
All behaviors promote trust. “Compared to employees at low-confidence companies, 50% more of those who worked at high-confidence organizations were planning to stay with their employer the following year,” HBR concluded.
More than half of the departing employees report that neither their manager nor another company supervisor had a conversation with them about work satisfaction or future goals. Effective managers are good communicators who promote the retention of companies.
Competent employees are loyal employees
If an employee gets more responsibility and influence, he will run away less quickly.
LinkedIn took his EPP survey and compared it with the retention data, and the result was that companies that were considered places with employee influence had employees who stayed longer in their jobs. Less empowering employees of the company only had a 35% chance of celebrating a three-year work anniversary.
Employees want to be autonomous. They don’t want to be microcomanaged. Employees want control over their work,
flexible working arrangements
and want to be recognized for their achievements.
The success of a company is directly linked to its preservation
The Bureau of Labor Statistics reported that last year the largest number of people quit their jobs in the US in the last two decades. A Gallup survey called voluntary staff turnover a trillion-dollar problem for US companies.
LinkedIn asks companies to consider that:
- A promoted employee was 55% more likely to stay in a company, compared to someone who stayed in the same position; someone who laterally moved to a new position was 38% more likely to stay.
- An employee who works at a company with a reputation for open and effective management was 50% more likely to stay with that company for three years, compared to someone at a company that scored low on open and effective management.
- Someone at a company where employees are competent was 34% more likely to stay for three years, as opposed to someone at a company that gave employees less influence and autonomy.
In summary, LinkedIn suggested:
- keep employees involved
- open untapped opportunities for more employee mobility
- ensure effective management
- giving employees more influence on their work
“To compete for talent, employers must deliberately invest in managers through integrated engagement, performance management, and L&D (learning and development programs),” Black said. “These managers will become those who empower their employees and make them feel empowered. Once you crack it, it’s a virtuous cycle.”
For more information, read How to Have Effective One-to-One Meetings at TechRepublic.
Executive Briefing Newsletter
Discover the secrets of the success of IT leadership with these tips on project management, budgets and dealing with daily challenges.
Delivered on Tuesday and Thursday
Register today
