Glassdoor ® has released new data which reveals that 35% of hiring decision makers expect more employees to quit over the next 12 months. The survey, conducted among 750 hiring decision makers (those in recruitment, HR, and responsible for hiring), also finds that nearly half (45%) note that salary is the top reason for employees changing jobs, followed by career advancement opportunities, benefits, and location. While those surveyed believe their organization is satisfactory/very satisfactory at clearly setting pay and benefit expectations within job postings, salary ranges are still an enigma: survey data shows fewer than one in 10 online job listings include pay data in the job description. More than one-third (37%) of hiring decision makers say retention rates would increase significantly if new hires were better informed during the hiring process.
In addition, a separate Glassdoor survey from 2017 shows that nearly all (98%) job seekers and employees say it would be helpful to see pay ranges included in open job listings.
Pay can be a big motivator for employees to take a job, however, very few job listings actually include pay information, even if this is overwhelmingly what job seekers want. If candidates were better informed about how their pay and career could progress during the initial job search and recruiting process, they would be less likely to take a job that turns out to be a bad fit, said Carmel Galvin, Chief Human Resources Officer at Glassdoor in a press release. Recruiters and hiring managers need to manage expectations and use all channels available to them to communicate with potential candidates to ensure pay realities meet expectations. It shouldn’t be a battle for job seekers to gain insights into salaries, benefits, culture and what their career path might look like in a job.
Half (48%) of hiring decision-makers note salary and compensation is the most influential factor for a candidate decision on where to work. Pay offers from rival firms are a significant consideration for employers two-thirds noted competing offers were a major challenge in attracting and hiring informed candidates.
There is almost always going to be a rival firm that could potentially pay your best people more, but Glassdoor research and other third-party studies confirm that company culture matters more than pay as a driver of long-term employee satisfaction and engagement. If you can improve your workplace culture and offer people career advancement opportunities, this will help you hold on to people longer, added Galvin.
A separate study by Glassdoor Economic Research found that employers with better overall Glassdoor ratings are more likely to retain employees. Improved workplace culture, competitive base pay, and employee career advancement opportunities are associated with lower employee turnover.