What Drives Employee Turnover? Not Compensation

Why do employees leave their companies for another job?

To examine this question, I tapped into our Q3 2015 consumer benchmark study which included more than 5,000 U.S. full-time employees. The analysis compared two groups of employees, those who were likely to look for a new job in the next six months and those who were not.

Compensation does not appear to be a significant driver, if one at all. As you can see below, employees who do not believe that they are fairly compensated are not much more likely to look for a new job than those who feel that they are appropriately paid.

The most significant drivers of an employee looking for a new job is how they feel about the work that they do and their pride in their company.

1608_CompensationAndEmployeeTurnover

The bottom line: Employees want meaning in their work.

Written by 

I am a customer experience transformist, helping large organizations improve business results by changing how they deal with customers. As part of this focus, I examine strategy, culture, interaction design, customer service, branding and leadership practices. I am also a fanatical student of business, so this blog provides an outlet for sharing insights from my ongoing educational journey.

Simply put, I am passionate about spotting emerging best practices and helping companies master them. And, as many people know, I love to speak about these topics in almost any forum.

My “title” is Managing Partner of the Temkin Group, a customer experience research and consulting firm that helps organizations become more customer-centric. Our goal is simple: accelerate the path to delighting customers.

I am also the co-founder and Emeritus Chair of the Customer Experience Professionals Association (CXPA.org), a non-profit organization dedicated to the success of CX professionals.

4 thoughts on “What Drives Employee Turnover? Not Compensation”

  1. Bruce, this is very interesting. I’m curious – was there any understanding of the relationship an employee has with his/her manager a factor? Thanks, Michelle Morris

  2. I like studies like this. The first instinct might be to shrug and say, “So what – I knew that.” But, this gives us real data to backup that hunch. Thank you.

    Your findings also correlate well with a recent study I did on the causes of contact center agent burnout. The number one risk factor was agents who believed their company wasn’t customer-focused.

Leave a Reply