Higher salary has been cited as a primary driver of voluntary turnover. According to a recent survey by Glassdoor®, one of the world’s largest job and recruiting sites, thirty-five percent of hiring decision-makers expect more employees to quit over the next 12 months.
The survey gathered data from 750 recruiters, among them HR employees and other employees responsible for hiring in the U.S. and U.K. The data established that nearly half (45 percent) feel salary is the top reason for employees to jump ship. Hiring managers can spend time and resources to find and hire smart, talented and experienced people but if the compensation is too little for the effort the job requires, they will eventually move on to greener pastures.
As an employer, providing pay information at the beginning of the recruiting and interview process can significantly increase employee retention rates. It will drive greater interest to your jobs and reduce time spent in the recruitment and interview process by ensuring only informed candidates with the right expectations apply.
The Glassdoor survey shows more than one-third (37 percent) of hiring decision-makers say hiring informed candidates (candidates informed about pay realities), results in better retention rates, more productive and engaged employees.
It’s, therefore, helpful to include salary estimates in job listings to better match the right people with the right companies. In fact, a separate Glassdoor survey from 2017 shows that nearly all (98 percent) job seekers and employees support this.
Job applicants prefer not to waste their time applying for jobs that pay outside of the salary range which they require. If candidates are better informed about how their pay and career could progress early on in the recruitment process, then people who don’t want the job at the salary you’re willing to pay won’t waste their time and your time applying for the position. Employers who fail to provide this information could lose significantly in the search for particular skills, competencies, and experience.
Another study by Glassdoor Economic Research found that employers with better overall Glassdoor ratings, owing to better workplace culture, competitive pay, and employee career advancement opportunities are associated with lower employee turnover. It’s important for employees to recognize that what attracts a candidate to a particular job is often different from what keeps that person there.
While salary is a key motivator for potential employees, it certainly won’t keep them in a job. Employees also desire the opportunity to continue to grow and increase their skill through career advancement opportunities. Besides that, they are looking for positions that offer a comfortable company culture, career path, diversity of responsibilities, and a work/life balance.