Why workers are leaving… and
what you can do about it Lance J. RICHARDS

/02 Every time someone says
“candidate experience”, I grow another grey hair. Here’s why.

Foreword When a candidate applies
for a job, they expect certain things from the role and the employer. However, those expectations aren’t always met once they sign on as an employee, with regard to anything from responsibilities and remuneration to career advancement and workplace culture. That disconnect – that failure to provide continuity in experience – has a direct impact on employee satisfaction, engagement and retention. It can also be a problem if a role exceeds a candidate’s expectations. We know that employee happiness and satisfaction pave the way for engagement, which in turn drives innovation and productivity. But we also know that satisfaction doesn’t necessarily guarantee engagement. In fact, a very highly satisfied employee who is not engaged can be a liability. To ensure people aren’t disappointed or spoilt in their new roles, employers need to work to align candidate expectations with the reality of the role. It’s just as important for employers to gauge whether existing employees are fulfilled in their work, and that their goals and aspirations for professional development and career progression are being met. /03 A very highly satisfied employee who is not engaged can be a liability.

Foreword The research in this
paper suggests an employee’s workplace experience correlates with how engaged and satisfied they are… and how likely they’ll be to leave. In this paper, I endeavour to explain (with the help of a few statistics) what we see as the factors either contributing to engagement and retention or driving employees away. Please, have a read. And remember, “candidate experience” is vitally important. But so too is the experience that individuals have once they’re employed – whether it’s their second week in the role or second decade in the business. /04

/05 52 percent of employees
worldwide are happy in their roles But 47 percent changed jobs in the last year And 63 percent expect to switch jobs in the next year

Introduction The 2013 Kelly Global
Workforce Index compiles information and insights on workplace cultures around the world. Using data sourced from more than 120,000 respondents in 31 countries, its purpose is to present readers with a clear profile of key issues currently affecting global workplaces. The third instalment focuses on employee engagement and retention. It investigates the employee-employer relationship, gauging issues such as loyalty, happiness and commitment, and it reveals a global restlessness among employees. Although 52 percent of workers are happy in their roles, just under half have changed jobs in the last year and most regularly consider quitting. Few are willing to recommend their employer to friends and colleagues. Commitment and loyalty levels are low worldwide. More than half of those who are happy in their roles still regularly look for new jobs, and almost two-thirds intend to switch employers in the next year. What are they seeking? In the wake of the global financial crisis, employees appear to be looking for reputable employers with sound financial track records and strong corporate cultures. /06

Introduction Employees also want career
advancement; an engaging, supportive work environment; and a better balance between their professional and personal interests. In fact, most value these intangible factors more than competitive remuneration and attractive benefits. Yet our research also shows employees don’t always find what they’re looking for by changing jobs. Only a minority of individuals who have recently changed roles say they are happy in their new situations. This paper examines rates of job-change and employee sentiment, and outlines practical ways for managers and business owners to keep employees focused, engaged and committed. By understanding what employees want, what they hope for in an ideal employer, and finding ways to meet these expectations, we believe employers can help stem the loss of talent. On the flipside, employees themselves may find more happiness by improving communications with their current employers rather than continually trying new ones. /07

why workers are leaving…and what
you can do about it Many employees are changing jobs Around the world, there’s a high rate of employment volatility – employees are leaving jobs en masse. The 2013 Kelly Global Workforce Index shows 47 percent of employees around the world changed jobs in the last year. Although there are variations, the rate of job-change is more or less consistent across all regions. Figure1: Employment volatility by region /08

why workers are leaving…and what
you can do about it /09 Figure 1: Employment volatility by region ent Volatility by region Option B Employment Have you Volatility by region Option B within the past year? (% “Yes” by Region) changed employers as Americas Yes Yes 45% 45% 34% 34% 21% 21% No, but I have considered No, but Iemployers have considered changing changing employers No, I am not interested in changing not interested in No, I am employers changing employers EMEA 51% 34% 51% 34% 15% 15% APAC 42% 42% 40% 40% Global 47% 47% 18% 36% 36% 18% 17% 17%

why workers are leaving…and what
you can do about it EMEA shows the highest rate of job change Looking at the rate of change by country reveals intriguing nuances in each region (see Figure 2). Europe, the Middle East and Africa (EMEA) is the most volatile region for employment in the world – just over half of employees in EMEA changed jobs in the last year. This rate of flux is led by France, which has the second-highest incidence of job-change of all countries surveyed in the index – 61 percent of the French workers we spoke to started new jobs in 2012. When it comes to employment volatility, the region is over-represented in the global top 10 – over half of respondents in France, Denmark, the Netherlands, Switzerland and the UK started work with a new employer in the last year. The region also has outliers. Employment numbers in South Africa – a country struck hard by the global downturn – have steadily improved since 2011.1 The 2013 Kelly Global Workforce Index shows its employment is quite stable, with only 21 percent of employees changing roles in the last year. Figure 2: Employment volatility by country 1 Ekkehard Ernst, Steven Kapsos et al., Global Employment Trends 2013, International Labour Organization, p.48, www.ilo.org/wcmsp5/groups/public/---dgreports/---dcomm/---publ/documents/publication/wcms_202326.pdf. /10

why workers are leaving…and what
you can do about it /11 Figure 2: Employment volatility by country Employment Volatility by country Have you changed employers within the past year? (% “Yes” by Country) 70 62 61 58 56 55 55 55 53 53 50 50 49 49 46 46 45 44 43 43 42 42 41 39 36 35 34 34 33 31 30 21 EMEA APAC Americas 60 50 40 30 20 South Africa Puerto Rico Indonesia India Germany China Thailand Malaysia Singapore Norway Sweden US Russia Ireland Italy Hong Kong Hungary Mexico Poland Canada UK Switzerland Netherlands Belgium Luxembourg New Zealand Brazil Denmark Portugal France 0 Australia 10

why workers are leaving…and what
you can do about it The Americas show considerable stability In the Americas, 45 percent of employees changed employers in the last year, while just over one third considered changing. Around one fifth of employees indicated they had no interest in changing – a much higher incidence than other regions. Certain countries in the region have experienced more volatility than others. Brazil is among the five most volatile– 55 percent of respondents changed employers in the last year, possibly related to historically low rates of unemployment providing a wealth of job opportunities.2 The research shows employment in the US is relatively stable, by world standards, with 42 percent reporting a change of employer in the previous year. 2 Trading Economics, ‘Brazil Unemployment Rate’, www.tradingeconomics.com/brazil/unemployment-rate, accessed September /12

why workers are leaving…and what
you can do about it Job-change in APAC split between ANZ and the rest APAC has the lowest rate of employment volatility in the world – only 42 percent of the region’s employees changed roles in the last year, although they were also the most likely to be considering a change. Despite this, the region contains the country with the world’s highest rate of employment volatility – Australia demonstrated a 62 percent incidence of job change. New Zealand, Australia’s neighbour, is not far behind, with a change rate of 55 percent. Australia and New Zealand (ANZ) stand in stark contrast to the rest of the APAC region. With the exception of Hong Kong, which recorded a job-change rate of 45 percent, most of the region’s countries are relatively stable. Considered globally or regionally, the 2013 Kelly Global Workforce Index shows a high level of volatility in the global employment market. So, why are employees leaving? /13

why workers are leaving…and what
you can do about it Employees are happy, yet restless Employees are relatively happy, but are still looking for better opportunities. If employers want their people to stay, they’ll need to make sure workers can find what they’re looking for without leaving the office. Despite high levels of employment volatility, some 52 percent of global respondents say they’re either happy or very happy in their roles, down from 53 percent in the previous year. EMEA employees are the least happy and this appears to have affected the region’s volatility. In total, only 46 percent of EMEA respondents to the 2013 Kelly Global Workforce Index said they were either happy or very happy with their current job, down from 49 percent last year. By comparison, employees in the Americas are relatively content in their roles, sitting just above the global average. Interestingly, employees in APAC are significantly happier than those in other regions. APAC is also the only region to demonstrate a higher level of happiness than last year. Figure 3: Employee happiness /14

why workers are leaving…and what
you can do about it /15 Figure 3: Employee happiness Employee Happiness by region Are you happy in your job? (% “Happy” and “Very Happy” by Region) 70% 2013 201thirteen 2012 201twelve 60% 50% 40% 30% Americas EMEA APAC Global

why workers are leaving…and what
you can do about it Most employees who changed jobs aren’t happy Our research shows that changing jobs doesn’t necessarily improve total happiness. Only 48 percent of workers who changed employers in the last year are happy in their new role. This figure is lifted by a high rate of new-job satisfaction in APAC. The high level of satisfaction among job changers in APAC is likely driven by the prosperous economies of Australia and New Zealand. Perceiving the greater economic stability in these countries, employees are leaving jobs they may have been unhappy with during the global downturn to find a wealth of more attractive and lucrative roles available to them. Of those that changed roles in the past year, Generation Y workers are the happiest with the switch. Generation X and Baby Boomer employees are less happy with their employment changes. This probably reflects generational differences in eagerness for career advancement – younger employees are more motivated by advancement than their older, more experienced colleagues. Those that have changed are more likely to perceive the shift as a progression, even if they’ve yet to settle into their new roles. Figure 4: Employee happiness with job switch, by region Figure 5: Employee happiness with job switch, by generation /16

why workers are leaving…and what
you can do about it /17 Figure 4: Figure 5: Employee happiness with job switch, by region Employee happiness with job switch, by generation If you have changed employers in the past year, are you happy in your new role/job? (% “Very Happy” or “Happy” by Region) Happiness with job Switch by region If you have changed employers in the past year, are you happy in your new switch - generation (% “Very Happy” or “Happy” by Generation) Happiness with job role/job? AMERICAS EMEA APAC GLOBAL GEN Y GEN X BABY BOOMERS 41% 43% 64% 48% 54% 47% 40%

why workers are leaving…and what
you can do about it Most employees are dissatisfied with their employer The willingness of employees to recommend an employer as a place to work is a reasonable indication of their satisfaction in the workplace. By this measure, the 2013 Kelly Global Workforce Index shows employees are acutely dissatisfied with their employer, with an average of only 29 percent globally willing to recommend their employer to others. Figure 6: Willingness to recommend employer /18

why workers are leaving…and what
you can do about it /19 Figure 6: Willingness to recommend employer How likely would you be to recommend your employer to a friend or colleague as an employment opportunity? (Respondents rating 9 or 10 on a scale of 1–10 where 1 = “Definitely would not” and 10 = “Definitely would”) Willingness to recommend employer AMERICAS EMEA APAC GLOBAL 42% 24% 28% 29%

why workers are leaving…and what
you can do about it What do employees value in an employer? How can around half of employees be personally happy in their jobs, yet so unlikely to recommend their employer to friends or colleagues? It helps to consider the factors that lead an employee to make a referral to their professional contacts. Just over one quarter say a company’s culture or reputation is the main reason for referral. This is followed by opportunities for advancement, interesting work and personal fulfilment. Each of these factors is rated as more important than compensation. This question reveals an organisation’s culture and career advancement opportunities are two main factors contributing to employee satisfaction. Employees need to feel as though their place of work suits their personal needs, as indicated by the emphasis placed on fulfilment, flexible work and overall culture. Likewise, they want to be challenged or engaged by their work, and see how the role will advance their career. Businesses concerned about employee satisfaction levels should ask employees for their input on how to improve office culture. Similarly, they should ensure that the KPIs they create for each role present a clear path for career advancement. Figure 7: Factors influencing employer referral /20

why workers are leaving…and what
you can do about it /21 Figure 7: Factors influencing employer referral Which of the following factors are most influential in terms of the likelihood that you would recommend your Factors influencing an Employer referral employer? (Globally, respondents who rated 9 or 10 on a scale of 1–10, where 10 = “most likely to recommend”) 21% 10% 26% 17% Company culture/ reputation Opportunity for personal growth/ advancement Interesting or challenging work 14% Personal fulfillment (work-life balance) 2% 9% Competitive compensation benefits Flexible work schedule 1% Other Opportunity for telecommuting (working from home or remotely)

why workers are leaving…and what
you can do about it Commitment and loyalty are low Commitment and loyalty levels are low globally – but taking individual employees’ ambitions into account can help change that. The employment instability of the global economic crisis heavily undermined employee loyalty, but the 2013 Kelly Global Workforce Index shows that many businesses are still winning people back. More than one quarter of employees felt more loyal towards their employers than last year. Loyalty trends correlate roughly with those of employee satisfaction – loyalty is highest in APAC and lowest in EMEA, with the Americas sitting somewhere in between. However, employees also show low levels of commitment to their current roles. In the Americas, four in 10 employees report being totally committed to their current role. Even though these workers are a minority, this is a positive result by global standards. Workers in this region are among the most engaged in the world, especially when compared with levels of total commitment in APAC or EMEA. Figure 8: Employee loyalty Figure 9: Employee commitment to job /22

why workers are leaving…and what
you can do about it /23 Figure 8: Employee loyalty Employee Loyalty by region Compared with a year ago, do you feel more or less loyal to your employer? (“More loyal” by Region) 50% 2013 201thirteen 2012 201twelve 40% 30% 20% 10% Americas EMEA APAC Global

why workers are leaving…and what
you can do about it /24 Figure 9: Employee commitment to job Employee Committment to job by region How committed or engaged do you feel with your current employer? (% “Totally Committed” by Region) 50% 2013 201thirteen 2012 201twelve 40% 30% 20% 10% Americas EMEA APAC Global

why workers are leaving…and what
you can do about it Reasons for job choice can help explain low commitment and loyalty To understand these globally low levels of employee commitment and loyalty, employers need to appreciate what drives people to choose a job in the first place. Factors that influence job choice vary depending on the employee’s age, yet the 2013 Kelly Global Workforce Index reveals some factors that matter to all employees regardless of what stage they are at in life. Most employees value the personal fulfilment offered by a role above opportunities for advancement or remuneration. This is particularly true among Baby Boomer employees. These workers also value compensation and benefits more than other generations, and prioritize them over personal growth and advancement. This makes sense given the Baby Boomers’ experience and typically higher levels of financial responsibility. Personal fulfilment is a major priority for Generation X workers. Following this, Generation X places almost equal weight on advancement and compensation. Generation Y workers value advancement above compensation, but only slightly, which implies these employees are more likely to sacrifice personal fulfilment for an opportunity to advance another rung on the career ladder. Figure 10: Key factors influencing job choice /25

why workers are leaving…and what
you can do about it /26 Figure 10: Key factors influencing job choice Key Factors influencing job choice Which of the following factors would drive your decision to accept one job/position over another? (By Generation) 50% Gen Y Baby Boomers Gen X Baby Boomers 40% All generations Gen X Gen Y 30% All generations 20% 10% 0% Personal fulfillment (work-life balance) Personal growth/ advancement Compensation/ benefits Corporate sovereignty/ goodwill Other

why workers are leaving…and what
you can do about it Employees need fulfilment and progression Employers hoping to lift levels of employee commitment and loyalty should carefully consider their employees’ career priorities. If an employee is older, take measures to ensure they’re happy with their working arrangements and give them plenty of autonomy so they can control their work–life balance. If the employee is a recent graduate, endeavor to build opportunities for personal development and clear career advancement paths. /27

Job scanning and intention to
shift Workers are leaving for new roles in search of an inviting workplace culture and job stability. Furthermore, they value these things above all other factors.

why workers are leaving…and what
you can do about it Most employees are scanning for new jobs Globally, 34 percent of workers actively evaluate the job market on a daily basis, even if they’re happy in their current roles. Twenty-nine percent do so once or twice a week. The graph below shows there is a high incidence of daily job searching in the EMEA region – this would seem a logical step for these employees, given their high levels of discontent and dissatisfaction. There is a much lower level of daily searching in APAC – this is likely a result of the relative prosperity and dynamism among these economies, resulting in more engaged, or at least less frustrated, employees. It may also indicate that these employers are happier in their current roles. Figure 11: Frequency of job scanning /29

why workers are leaving…and what
you can do about it /30 Figure 11: Frequency of job scanning Frequency of Job scanning How frequently do you look for a better opportunity or evaluate the external job market? (Among those who actively do so even when happy in their job, by Region) 50% Americas Global EMEA APAC 40% All countries APAC EMEA 30% Americas 20% 10% 0% Daily Once or twice a week Once or twice a month Less than once a month

why workers are leaving…and what
you can do about it Many employees intend to change jobs The 2013 Kelly Global Workforce Index shows that well over half of respondents globally intend to change jobs in the next year. In the EMEA region, respondents’ intentions to shift roles are unchanged since last year, and are almost the same in APAC. The Americas drive the global average lower – 10 percent fewer respondents in this region intend to change roles than last year. Coupled with the region’s better-than-average incidences of employee loyalty and commitment, this should be seen as a promising result for the region’s employers. The number of employees thinking about quitting their current role is also high – although, again, the Americas demonstrate a more optimistic employee sentiment than other regions. Figure 12: Intention to switch jobs Figure 13: Employees contemplating quitting /31

why workers are leaving…and what
you can do about it /32 Figure 12: Intention to switch jobs Intention to switch job (by region Do you intend to look for a job with another organization within the next year? (“Yes” by Region) 80% 2013 201thirteen 2012 201twelve 70% 60% 50% 40% Americas EMEA APAC Global

why workers are leaving…and what
you can do about it /33 Figure 13: Employees contemplating quitting Employees Contemplating Quitting Do you frequently think about quitting your current job and leaving your employer? (“Yes” by Region) 60% 2013 201thirteen 2012 201twelve 50% 40% 30% 20% Americas EMEA APAC Global

why workers are leaving…and what
you can do about it What sort of jobs are employees looking for? A simple way to stem the tide of employees leaving their current workplaces is to consider what they’re looking for in new roles. Our research shows that location is the most important factor for employees globally. This indicates an unwillingness to suffer long commute times, and implies that most workers place a high value on work–life balance. The next most critical factor is a business’s corporate brand or reputation as an employer. Each of the other factors outlined in the graph resonate with it in various ways. Corporate culture and flexible work arrangements align with employee priorities of personal fulfilment and financial performance; longevity and turnover statistics illustrate the importance of employment stability. All of these factors contribute to a business’s reputation as an employer. When considering a potential employer’s reputation, most workers see employment stability as the most important factor, followed by strong leadership, innovation and, again, a good corporate culture. Figure 14: Critical factors in job evaluation Figure 15: Determinants of employer’s reputation /34

why workers are leaving…and what
you can do about it /35 Figure 14: Critical factors in job evaluation Critical factors in job evaluation What factors are most important to you when evaluating a potential employer or job opportunity? (Global) 41% 53% 21% 48% 3% Turnover statistics Other 35% 54% 51% Location Corporate brand/ reputation Corporate culture Financial Performance Flexible work arrangements offered Longevity

why workers are leaving…and what
you can do about it /36 Figure 15: Determinants of employer’s reputation Determinants of Employer the reputation of a potential employer, what factors are most important? (Global) When considering reputation 43% 75% 2% 41% 50% 31% Employment stability Strong leadership Innovation Fun corporate culture Corporate social responsibility/ philanthropy Other

why workers are leaving…and what
you can do about it Culture and stability are key Our research suggests employees regularly seek new jobs for a more inviting and supportive corporate culture and greater employment stability. To keep employees focused on their current roles, employers should provide clear information about the business’s financial performance and likely trajectory in the short term. This may help allay employee concerns about instability and give them a better perspective on the role they’re playing in the success of the business. These findings reinforce the importance of workplace culture to workers – if an employee feels an employer takes an interest in their wellbeing and development, they’re more likely to stay. /37

/38 managers and teams Better
communication between An employee’s direct manager is the conduit between their work and the rest of the business. To keep them on board, managers need to nurture workers’ aspirations as well as cracking the whip.

why workers are leaving…and what
you can do about it Managers play a major part in employee happiness The 2013 Kelly Global Workforce Index reinforces the idea that the nature of an employee’s relationship with their direct manager has a significant effect on their overall engagement and satisfaction levels. Globally, 63 percent of respondents said their immediate superior plays a major role in their job satisfaction and engagement. This reveals that employees see the role of the manager as more than just a carrot/stick proposition. In addition to monitoring KPIs and providing incentives, managers should be responsible for ensuring employees are challenged and content in their work. Figure 16: Impact of direct manager on employee satisfaction /39

why workers are leaving…and what
you can do about it /40 Figure 16: Impact of direct manager on employee satisfaction To what degree does your direct manager/supervisor impact your level of satisfaction or engagement with your employment? (Respondents who rated 4 OR 5 on a scale of 1–5, where 5 = “significant impact” and 1 = “no impact at all”) Impact of Direct Manager on Employee Satisfaction AMERICAS EMEA APAC GLOBAL 63% 60% 68% 63%

why workers are leaving…and what
you can do about it Recommendations for managers Managers have a strong bearing on employee job satisfaction, workplace culture and employment stability. As such, it’s important for employers to understand what workers expect of managers to keep people happy and engaged in their roles. More than half of respondents said training opportunities would help improve their satisfaction and level of engagement. Offering internal training is a logical step for employers: it boosts a worker’s sense of professional worth and career momentum, while increasing their value as an asset to the business. Respondents also emphasized the importance of communication between managers and staff as central to engagement. Other major factors relate to the number-one priority among employers evaluating jobs: personal fulfilment. A reasonable workload, positive feedback and ownership over their roles are all weighted similarly by respondents. This suggests a reasonable work–life balance and positive reinforcement are crucial factors in keeping employees on board. Figure 17: What managers need to do /41

why workers are leaving…and what
you can do about it /42 Figure 17: What managers need to do What could your direct manager do to improve your satisfaction or level of engagement, What asidemanagerssalary/benefits or promotion? (Global, multiple responses) from need to do 37% 46% 53% 8% 25% 23% Training opportunities Clarify responsibilities, goals and objectives More transparency with communication More reasonable and manageable workload 23% Public recognition More autonomy Other

Lessons for employers The 2013
Kelly Global Workforce Index shows that employees are restless, despite being relatively happy in their roles. Low levels of engagement, loyalty and satisfaction make employees more likely to seek new opportunities in search of personal advancement and fulfilment. Based on this paper’s observations, we recommend six key areas of focus for employers hoping to improve employee engagement and retention. 1. Provide clear lines of communication: Clarify responsibilities, goals and objectives with employees, and encourage managers to communicate plainly and openly with their direct reports. Employees find it much easier to take ownership of their roles with clear guidance regarding their responsibilities and KPIs. 2. Publicize strong performance: If the business is performing well, let employees know. This not only demonstrates that their hard work is paying off, but also tacitly reinforces their employment security, which is essential for engagement. 3. Measure fulfilment and engagement: Encourage managers to gauge levels of fulfilment and engagement among employees. By making an effort to meet these expectations, you’ll show employees that you value them beyond the traditional transactional worker-employer relationship. /43

Lessons for employers continued 4.
Offer opportunities for advancement: It’s important to nurture employees’ desires for advancement by offering training and skill development where possible. Likewise, it’s useful for managers to clearly outline how employees can progress within the business, to stem perceptions of career stagnation. 5. Account for generational priorities: Each employee will have different motivations depending on their experience and level of career advancement. If you’re concerned an employee may be tempted to leave, consider what their current priorities are in light of their experience and role. For example, older staff are generally more likely to value flexible working arrangements than training incentives. 6. Ask for feedback on workplace culture: A positive workplace culture is key to keeping employees happy and engaged in their work. While remuneration is an important motivator, it’s essential for employers to foster a sense of personal fulfilment in their workers, and culture contributes to this. Canvas employees for advice on how you can improve office culture. Whether it’s a system for publicly recognizing hard work or something as simple as providing tea and biscuits, a small tweak to company culture could go a long way. /44

For more thought leadership go
to talentproject.com About the Author Lance J. Richards, GPHR, SPHR, HRMP is Vice President, Innovation for Kelly Services. Previously, he headed KellyOCG’s Human Resources Consulting practice, where he had overall accountability for the practice on a global basis. Lance is a frequent writer and speaker, providing thought leadership on workforce strategy and evolution. Lance has over 20 years of experience in executive roles in cross-border HR. Twitter: @lancejrichards Linkedin: Linkedin.com/in/lancejrichards Email: Lance.richards@kellyservices.com About Kelly Services® Kelly Services, Inc. (NASDAQ: KELYA, KELYB) is a leader in providing workforce solutions. Kelly® offers a comprehensive array of outsourcing and consulting services as well as world-class staffing on a temporary, temporary-to-hire, and direct-hire basis. Serving clients around the globe, Kelly provides employment to more than 560,000 employees annually. Revenue in 2012 was $5.5 billion. Visit kellyservices.com and connect with us on Facebook, LinkedIn, and Twitter. Download The Talent Project, a free iPad app by Kelly Services. This information may not be published, broadcast, sold, or otherwise distributed without prior written permission from the authorized party. All trademarks are property of their respective owners. An Equal Opportunity Employer. © 2013 Kelly Services, Inc. EXIT