Undoubtedly, 2021 was characterised by big changes in job markets across the world. Much has been said about the exodus of hospitality and catering workers since the onset of COVID-19, which has thrown some sectors onto highly uncertain ground and has caused most people to reassess what they want and need from their careers.
In a webinar organised by Finance Malta called FinTalks, Headhunter and Talent Advisor Fran Moisa has a frank discussion with interviewer Rachel Attard about the reasons behind the high rate of employee turnover, which has increased substantially in recent years.
In a short clip from the episode, Ms Moisa posits that remuneration is not the leading factor behind high employee turnover. She explains that when demand for workers goes up, and supply has not kept up, businesses increase salaries to plug this gap.
Ms Moisa adds, however, that the phenomenon of increasing salaries to address this issue is only a temporary solution, and, studies have shown that remuneration is not even in the top three reasons behind why an employee chooses to stay or leave their place of work.
Beyond remuneration, the leading talent advisor stresses that employees are looking for opportunities for learning, for growth and for professional development.
Explaining further, she clarifies that training or growth do not necessarily have to have a direct connection with a worker’s particular role, instead, opportunities for cross-collaboration and exposure to different parts of the business have shown to be a big pulling factor.
“When you are seeing many people changing jobs, remuneration is a small part of it. It has to do with exposure that one would get by moving jobs,” she says.
Ms Moisa adds that employees are going back to the original question in terms of the considerations they make when deciding on a job opportunity. Employees are asking themselves whether there is opportunity for growth.
“Companies that retain their staff the most effectively are the ones that create opportunities for their different departments, opportunities to collaborate together and learn from each other.”
She highlights an example by mentioning the auditor profession. Ms Moisa muses that there is big demand for auditors, and that the career progression of the field is quite straightforward, joining a company as a junior auditor and climbing up the ranks steadily until being made partner.
“But companies that expose their auditors to different areas, such as tax, compliance and advisory, retain them for far longer. Even though it is not directly related to their professional growth in terms of their CPA warrant, it does help them understand more about what the business is doing and how their job fits into the bigger picture.
“When employees feel aligned with the vision of the company, and when they feel they are involved in those areas that the business services, they stay longer with the business.”