The unemployment rate fell 0.4% to 6.3% and 49,000 jobs were added in January. These gains are weak but show improvement in comparison to the 227,000 jobs lost in December 2020. The number of unemployed people dropped from 10.7 million to 10.1 million but is still about 5.7 million higher than the pre-pandemic levels of February 2020.
Amtec Tip of the Month
What is it that makes a team member decide to leave one organization in favor of another? Payscale’s survey revealed that there are several reasons:
1. They want higher pay. 25% of respondents said the primary reason they left was for a bigger paycheck. Interestingly, women were 8% less prone than men to leave for more pay, and 6% less likely than men to choose another organization for higher compensation. Of those respondents who had joined a new organization, 16% were mostly attracted to the increased pay for the position and 6% mainly chose the organization for better benefits/perks.
2. They are unhappy at their current organization. 16% said they left due to unhappiness with the organization. Of those surveyed who had changed organizations, 11% were attracted to the workplace culture, 5% wanted to work for a larger organization, and 2% wanted to work for a smaller one!
3. They want to work at an organization more aligned with their values. 14% of those surveyed left because their values were different than their company’s values. Of those respondents who had found a new job, 27% said that the main attraction to their new organization was the opportunity to do more meaningful work.
4. They have other unmet needs or desires. Why do employees leave? Other reasons are the need to relocate, leaving a part-time job for a full-time one, desire for a promotion, or opportunity for a more flexible schedule. Of those surveyed who were now with a different organization, 17% were attracted to their new employer because of increased responsibilities for their role. Not surprisingly, the survey found that women are 11% more likely than men to quit an organization for more flexibility. Previous research shows that women are more likely than men to take time off from their job to take care of a family member.
Employees come in all ages, shapes, and sizes with various needs. They quit one organization and choose another for numerous reasons. Because one size cannot fit all and people experience different seasons, you can’t possibly address all their needs. A reasonable approach, then, is to ask, Who are our target employees? Understanding your company’s values and needs will help you define who you want to attract and retain.
2021 is here and as you know, we’re not out of the woods yet. 140,000 jobs were lost in December due to the increase in COVID-19 cases and the efforts to contain it. And at 10.7 million the number of unemployed people is still about 4.9 million higher than its February 2020 level.