Tuesday, 07-02-2012
Posted on 2009-04-07 in Training
People Not as Quick to Job-Hop
People Not as Quick to Job-Hop
Executive Connections Survey shows people remaining longer in current jobs before looking for next position...There is a marked difference in the length of time job hunters are prepared to stay in
their current position before considering a move, when compared with the same period twelve months ago, according to a new survey conducted by Executive Connections Recruitment Consultants.
Results from the year long survey, which compares statistics for 2006 with those for 2007, show that during 2006 a significant majority (32 per cent) were moving to a new company after between one and two years. One year later and this has almost halved with only 15 per cent considering a move after this length of time. In 2007, the majority of people (24 per cent) were staying in their roles for between 2 and 4 years before considering a change.
There would appear to be a combination of reasons at play here. Certainly the survey results showed that a good 17 per cent of people moving were doing so as a result of contracts coming to an end or companies downsizing. However, there also appears to be a general trend for people to be more cognisant of their CV and are wary of being seen to be ‘job hopping’ or moving about too frequently. These are people who are now aiming to maximise the experience they are getting with one firm before seeking a move to another. The fact that employees are weighing things up more carefully before making a move spells good news for employers. Not only are they holding onto key staff longer but also those that are on the market tend to have a more mature approach to their career path and tend to be more certain of their commitment to a new role. Indicators are that while there is still movement in general on the market, people’s timelines around a move have changed and their reasons for deciding to do so may surprise many.
A further interesting aspect of the survey is that the reasons cited by respondents for wanting to make a move from their current position have changed little year on year, with very few people (3 per cent) citing salary as their primary reason for wanting to make a move. The majority (24 per cent) point to better career progression as their main motivation for moving to another company. This finding is certainly being borne out by evidence on the ground within the recruitment industry. Although employers are showing a tendency to attempt to hold on to staff through ‘counter offers’, matching or bettering a rival employer’s offer when an employee hands in his or her notice, this tends only to act as a short term fix. Most employees who find themselves in this bargaining situation and decide to stay with their current employer are again back out on the job market within a period of six to eight months with the same perceived lack of career development reasons being cited again.
This opens a whole new challenge for employers, when considering how to ensure that valued employees recognise a clear career development path for themselves within their current organisation. It is no longer sufficient for employers to offer to finance employees who are undertaking further academic or professional qualifications. Other monetary benefits, such as private health insurance and company pension contribution are practically taken for granted in today’s market place and won’t provide a long-term feeling of appreciation. The real answer is to ensure that time and energy is invested in developing line managers who have the requisite soft skills to ensure that employees can clearly see, on a day to day basis, a development path for themselves and that they appreciate and share the company vision.
This truism stands regardless of the size of company and appears to be gradually hitting home. Executive Connections are noting a strong demand for HR and Training candidates across all sectors with a trend for smaller companies, who previously would have considered these tasks an ‘add on’ to someone’s role within the organization, to now consider hiring a specialist dedicated to the task. The average workplace these days is a far more complex environment than it was even five years ago and the scope of HR as a function is broader than it ever has been before.
For companies to truly understand how to retain experienced staff, they first need to clearly understand the reasons why people are choosing to leave. More and more companies are introducing various types of employee communication forums in an attempt to invite feedback from all levels within an organisation. However, the fact remains that regardless of how employers choose to attempt to gather this kind of data or exit information, unless employees feel that it is a truly confidential or anonymous means of collation, they are unlikely to be completely frank in the process. For this reason Executive Connections often find themselves called upon by partner clients to provide an ‘off the record’ insight into reasons for any spikes in employee movement.
Significantly, the survey also revealed a marked increase in the number of organisations seeking to employ graduates making a move into the employment market for the first time at 33 per cent up from 8 per cent. Other results show:
• Better career progression is cited by the majority of candidates/ respondents (24 per cent) as their reason for moving in 2007 and 2006 (25 per cent)
• The financial services market in Dublin is still proving attractive to candidates. Just under one third (29 per cent) of placements year on year were for people relocating into the Dublin market both from abroad and from other areas in the country.
• Commuting times were cited by 15 per cent of individuals as reasons for leaving their current job, up from 10 per cent 12 months ago
• In 2006 30 per cent of individuals were prepared to stay only one year in their current position before moving. By 2007 this dropped to 15 per cent.
• 8 per cent were looking to move after more than 5 years with their current employer, double that in the previous 12 months when the figure stood at 4 per cent.
Commenting on the survey Tracy Donohoe, Managing Director of Executive Connections says: ‘The survey contradicts media hype on retention issues and bodes well for employers who are investing heavily in career development paths for employees. However, employers should take note that the majority of candidates who were making a move within the Dublin marketplace were doing so as they perceived that there were better career progression opportunities elsewhere.’
Donohoe continues: “This points to the importance of succession planning and regular career reviews within the workplace, to ensure that employees feel valued and don’t fall into the trap of thinking that the grass is necessarily greener elsewhere.”
So far, indicators bode well for the employment market in 2008 particularly in the Banking and Financial services arena with demand for skilled candidates on a par with previous years, and an increased demand for those with specialist experience particularly in the areas of risk and compliance.
As well as traditional employee search selection and headhunting services, Executive Connections offer Human Resources Consulting services including career management, staff training and work-life balance programmes.
Executive Connections provides recruitment and Human Resource consulting services to the Banking, Finance and Commercial sectors. With headquarters in Dublin 2 and an office in Cork, the company currently employs over 30 consultants. Established and owned by former ‘Young Business Woman of the Year’, Hilarie Geary, Executive Connections clients include a range of high profile Blue Chip companies. In excess of 80 organisations have chosen Executive Connections as ‘preferred recruiters’ More information can be found at www.executive-connections.ie
