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ENGAGE TREND REPORT 04.27.10
Embedded in the Front Lines
Higher pay is still the top reason employees leave companies. In an era of limited pay raises and doing more with less - what else can an employer do to make top people stay?
A recent study takes a look at the psychology behind how employees make the difficult 'Stay or Go' decisions. This paper develops two theories in the field of job turnover. The first, the "unfolding model," explains why employees quit. The second, "job embeddedness," tells why workers stay. Understanding both of these theories could help employers keep their best employees.
Faced with 'unfolding' circumstances such as a fight with one's boss or an unanticipated job offer, an employee is forced to decide to stay or leave. Turnover decisions are influenced by comparisons between the investments made in their job or organization, the rewards they receive, the quality of alternatives and the costs associated with working for a particular organization -- and all of these comparisons change over time.
Job embeddeddness describes forces that cause one to feel he or she would not leave a job, which includes the extent to which people are linked with other people or to activities, the extent to which their jobs and communities fit with other aspects of their lives, and the ease with which their respective links can be broken, or what they would sacrifice if they left. If employees feel congruence between their values and goals and those of the organization, they will be more embedded in the organization.
Organizational leaders should understand that why employees quit often has nothing to do with being unhappy about the job and that helping build a sense of community among its employees can prevent them from quitting, the researchers say.
If you can't rely on increased compensation for retention, offer your employees the next best thing - a heavy dose of Corporate Culture.
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