Read PowerPoint Presentation text version

Employee Job Satisfaction & Retention Survey 2007 / 2008

An Employer versus Employee Overview

CONNECTING PEOPLE, PAY AND PERFORMANCE CONNECTING PEOPLE, PAY AND PERFORMANCE

1

Survey Highlights

At the end of 2007, Salary.com conducted its third annual survey of employee job satisfaction and the factors that contribute to satisfaction and retention. The survey asked questions of both employees and employers and yielded surprising and often conflicting results. Employers continue to underestimate employees interest in actively searching for new employment within the near future. Compensation is the most important factor for employees when choosing to leave a job; it is less of a factor for why they stay in a job. When broken down by gender, attractive compensation is the top reason for staying in a job for men, while women focus more on working relationships and desirable working hours. A gender breakdown does not alter the results for why employees leave a job. Although employers recognize the rising costs of replacing employees due to turnover, they will only offer, on average, a 7% increase to entice a valued employee to stay.

CONNECTING PEOPLE, PAY AND PERFORMANCE

2

Employer Perception of Employee Satisfaction

How Perceptive Do Employers Feel HR Team Is When Assessing Employee Satisfaction?

Highly Unperceptive 5% Highly Perceptive 24%

Somewhat Unperceptive 11%

Somewhat Perceptive 60%

Sixty percent of employers feel they are "somewhat perceptive" and 24% feel they are "highly perceptive" when assessing employee satisfaction, survey results reveal that confidence is unwarranted.

CONNECTING PEOPLE, PAY AND PERFORMANCE

3

Reality of Competitive Offers

Fifty percent of employers believe a salary increase of 8-15% is enough to lure current employees away. Thirty-eight percent of employees would need a competitive offer of 1630% to consider moving to a different organization. Seventeen percent would expect 31% or more. Fifty-one percent of employers "sometimes" make counter-offers; 14% "almost always" counteroffer; 35% never counteroffer.

4

Minimum % Salary Increase Competitor Would Have to Offer to Lure Employees Away

Percent of Responses

60% 50% 40% 30% 20% 10% 0% 1% -7% 8% -15% 16% -30% 31% -50% No amount will work 7% 13% 17% 3% 6% 1% 31% 38% 33% 50%

Percent Increase In Salary

Employee Employer

CONNECTING PEOPLE, PAY AND PERFORMANCE

Cost to Replace an Employee Due to Turnover

Top 5 Industries where average cost of replacing an employee due to turnover is highest Biotechnology Aerospace & Defense Industry Energy & Utilities Retail & Wholesale MFG Durable All Industries

$10,000 $30,875 $28,512 $27,545 $26,944 $21,430 $20,000 $30,000 $40,000 $50,000 $60,000 $46,250

06/07 avg. $15,000

Average Cost

In 2006/2007 employers estimated replacement costs due to turnover to average approximately $15,000. This year employers estimate costs will average $21,000 which represents a 40% increase.

CONNECTING PEOPLE, PAY AND PERFORMANCE

5

Top 5 Employee Job Search Activities

Employee Job Search Activities: Employee Responses vs. Employer Perception

27% 42% 32% 46% 30% 32% 22% 27% 27% 32% 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%

Updated my Resume Surfed online job postings Read classified employment listings Posted or emailed my resume to prospects Networked with friends and colleagues

Job Search Activity

Percent Respondents Employee Employer

Employees report to be engaged in the same top five search activities as last year. As in past years, employers underestimate the extent of employee involvement in these activities.

CONNECTING PEOPLE, PAY AND PERFORMANCE

6

Top 5 Reasons Employees Leave a Job

Reasons for Leaving a Job: Employee Responses vs. Employer Perception

Inadequate compensation 36% 27% 19% 22% 17% 7% 11% 12% 11% 0% 5% 10% 15% 20% 25% 30% 35% 40% 30%

Reason for Leaving

Lack of career advancement Insufficient recognition

Boredom Inadequate professional development opportunity

Percent of Respondents

Employee Employer

For the third year in a row, inadequate compensation remains the top reason employees leave a job. Employees and employers disagree most significantly in regard to the manager/employee relationship. Only 6% of employees selected this as a reason for leaving a job while 30% of employers felt this was a major factor.

CONNECTING PEOPLE, PAY AND PERFORMANCE

7

Top 5 Reasons Employees Stay in a Job

Employee Reasons for Staying in a Job vs. Employer Perception

Relationships w ith co-w orkers Reason for Staying Relationship w ith manager(s) Desirable w orking hours Attractive compensation Attractive benefits 0% 5% 10% 15% 17% 22% 31%

25% 25%

22% 20% 23%

18% 20% 20% 25% 30% 35% 40%

Percent of Respondents Employee Employer

The top reasons for remaining in a job were similar to last year, the only difference being attractive compensation replaced job security in the top 5. Interestingly, more than half of employee respondents did not list any reasons for staying in their job on this years' questionnaire.

CONNECTING PEOPLE, PAY AND PERFORMANCE

8

Top 5 Reasons Employees Leave a Job Women vs. Men

Employee Reasons for Leaving a Job - Women vs. Men

Inadequate compensation

27% 26% 21% 19% 17% 16% 11% 11% 11% 10%

Reason for Leaving

Lack of career advancement

Insufficient recognition

Boredom Inadequate professional development opportunity 0% 5%

10%

15%

20%

25%

30%

Percent of Respondents

Women Men

As reported last year, men and women leave jobs for the same reasons. The ranking of the top five reasons is identical to last years' results with inadequate compensation being the most popular response.

CONNECTING PEOPLE, PAY AND PERFORMANCE

9

Top 5 Reasons Employees Stay in a Job Women vs. Men

Employee Reasons for Staying in a Job - Women vs. Men

22% 22% 18% 26% 16% 18% 22% 25% 30% 35% 27%

Eelationships w ith co-w orkers

28% 27%

Reason for Staying

Relationship w ith manager(s) Desirable w orking hours Attractive compensation Attractive benefits 0% 5% 10% 15%

20%

Percent of Respondents

Women Men

Men and women again reported the same top reasons for staying in their jobs. Women place a higher importance on desirable working hours and work relationships while men focus more on compensation.

CONNECTING PEOPLE, PAY AND PERFORMANCE

10

What Benefits Would Entice Employees to Stay in a Job?

The most popular responses to benefits (outside of compensation) that would entice employees to stay in their jobs - in order of preference ­ are: Professional development Ability to work from home Additional week of vacation Flexible work schedule Of those employees who selected "other", the most popular responses were "better 401(k) program" and "enhanced health insurance benefits."

CONNECTING PEOPLE, PAY AND PERFORMANCE

11

Methodology

Salary.com invited a cross-section of individual employees and business representatives from across America to participate in its 2007/2008 Employee Satisfaction and Retention Survey. Prospective participants received an email containing the survey questionnaire. Participants completed as many sections of the survey as they desired, and then submitted their results to Salary.com electronically. Salary.com compensation professionals reviewed the data for consistency and accuracy and excluded data that appeared to be invalid. A total of 7,482 individuals and 245 human resource or other company representatives responded to our survey. Among the individual employee respondents, 7,101 were employed and provided valid responses to the survey questions--the remaining 381 were excluded from all analysis. Recipients of this report will find it impossible to discern the data contribution of any individual or company. Submissions were aggregated with data submitted by similar groups before results were calculated. Each numerical result reported in this document is based on data submitted by at least five (and often many more) separate respondents. This conservative approach is designed to protect participant confidentiality, and is consistent with the "Safe Harbor" guidelines adopted by the U.S. Department of Justice and the U.S. Federal Trade Commission.

CONNECTING PEOPLE, PAY AND PERFORMANCE

12

Information

PowerPoint Presentation

12 pages

Find more like this

Report File (DMCA)

Our content is added by our users. We aim to remove reported files within 1 working day. Please use this link to notify us:

Report this file as copyright or inappropriate

1002531


You might also be interested in

BETA
2007
digest
ZeiChap01.indd
untitled