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 an experience management transformist, helping organizations improve business results by engaging the hearts and minds of their customers, employees, and partners. My "job" is Head of the Qualtrics XM Institute. The Institute is still being established, but our goal is to help organizations around the world thrive by mastering Experience Management (XM). As part of this focus, I examine strategy, culture, interaction design, customer service, branding and leadership practices. And, as many people know, I love to speak about these topics in almost any forum. Prior to joining Qualtrics, I was managing partner of Temkin Group (leading CX research, advisory, and training firm), co-founder and chair of the Customer Experience Professionals Association (CXPA.org), and a VP at Forrester Research. I'm a fanatical student of business, so this blog provides an outlet for sharing insights from my ongoing educational journey. Check out my LinkedIn profile: www.linkedin.com/in/brucetemkin

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.

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