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Money Talks or Employee Walks: The #1 Reason Workers Leave Their Jobs
According to the Bureau of Labor Statistics, 2.86 million Americans quit their jobs in February 2019 alone. In Hawaii, the unemployment rate has ranged from 2.2 to 2.8% over the past two years. Therefore, many companies are struggling with the recruitment and retention of employees and are concerned about losing employees to another company.
According to a recent study conducted by PayScale, the number one reason employees quit their jobs to work for another company is to make more money. When 38,400 study participants were asked to give their primary reason for seeking new employment, the survey provided the following results:
- Higher pay (25%)
- Unhappy with current company (16%)
- Work with company more aligned with own values (14%)
- Relocation (11%)
- Current position is not full-time (10%)
- Promotion (7%)
- More flexible schedule (2%)
- Other (15%)
Additionally, higher pay was the number one reason employees would leave their jobs regardless of tenure. In other words, whether an employee worked with a company for less than one year or for more than 10 years, higher pay was the top reason across the board.
Finally, results from the study indicated that “job fulfillment” became a significant factor after the employee found a job that provided a pay increase. Specifically, 27% of respondents said the main reason for choosing one higher-paying job over another was “the opportunity to do more meaningful work,” followed by increased responsibility (17%) and increased pay (16%).
A copy of the study can be viewed here: Why They Quit You - Top Reasons an Employee Leaves.