Why are more than HALF of your employees looking for a new job?
Free Agency and Job Hopping are the new normal.
"Free Agency and Job Hopping are the new normal," according to Claudio Fernández and Aráoz Rajeev Vasudeva (Harvard Business Review Nov 7, 2016). Their hypothesis is that today’s workers are less committed to a specific organization and more committed to advancing their own interests which includes continually looking for a better firm or organization. They offer that:
“91% of people are either openly looking or open to a new job, and 76% look at opportunities at least monthly. Getting hired barely changes this behavior, with a full 65% of people resuming their searches within 91 days of their start dates and 59% of people acknowledging that they are constantly looking via job notification service subscriptions.”
This impacts your bottom line. First, the cost of employee turnover is huge: Human Relations overhead, new job advertising, loss of productivity between transitions, near zero productivity in the first several weeks of a new hire, as well as decreased productivity during the last weeks prior to departure (post-notice). In other words, employee’s lack of commitment is affecting the bottom line resulting in organizational churn at a number of troubling and costly levels.
Why is this? At Thinkenomics, we have found that the single most influential attribute to employees lack of organizational commitment is flawed leadership. While it is squarely within the hands of leadership to foster a healthy organizational climate that includes vital attributes of commitment, loyalty, and trust, most leaders have little to no idea how to actually engineer that type of an environment.
The Cure - a healthy Organizational Culture. Fortunately, there are proven people skills that can turn this problem around for companies. These skills result in better strategic solutions, more engaged employees, less sick days, and greater job satisfaction across the company. However, this type of healthy organizational culture must be deliberately engineered!. Companies must first start by recognizing the significant advantage offered through having a healthy organizational culture: loyal employees, less turnover, improved reputation and street credibility, and even better holiday parties…this is the true advantage for the 21st Century successful company.
What do you think?