Job Stability and Meaningful Work Are Top Reasons People Stay With a Company

It has been about a year since the Great Resignation hit the job industry, where millions of people quit their jobs in droves. It was predicted at the beginning of this year that the phenomenon might continue. People cited various reasons to quit their jobs, including flexibility, pay, and work culture. While the phenomenon may continue for some timeOpens a new window , many people plan to continue working for their current employers for the foreseeable future.

So, what are some top reasons people are willing to remain with their present organizations? And what is important to them? Paychex and Executive Networks recently conducted a study to find the answers. The top finding was that job stability and performing meaningful work were two key reasons for staying with an organization.

The following are a few more findings in detail.

Almost Half of Employees Plan To Stay With Current Employers

According to the study, 48% of employees do not have plans to quit their companies within the following year. Only 26% had plans to leave their company in the next year. Furthermore, 71% said they perform reasonable amounts of work, and 71% said they are given the tools necessary to succeed. About 69% felt valued for the jobs they perform.

Out of the people who plan to quit, the younger generation is more likely to want to switch jobs than the older generations. About 34% of Millennials and 30% of Gen Z workers want to switch companies, while 22% of Gen X and 15% of Baby Boomers want to quit. The younger generations â€” Millennials (36%) and Gen Z (49%) â€” were also more likely to have stay interviews than Baby Boomers (12%) and Gen X (21%).

When it comes to specific industries, people in business and professional services (41%); trade, transportation, retail, and utilities (35%); and construction (36%) may more likely quit in the year ahead. People in health and education services (16%) and financial services (18%) will least likely be those wanting to switch companies.

See more: Can the Great Resignation be Reversed in 2022? Here’s What Employees Really Want

Employees Value Organizations That Align With Their Interests and Values

The top reasons workers work at their organizations, besides pay and benefits, are job stability, meaningful work, and passion for their work/industry.

Most important reasons people work at their companies

Source: Paychex and Executive Networks studyOpens a new window

Company values and culture, company reputation, and the company’s products or services are the lowest-ranked reasons. This could mean that people are making career decisions on the basis of their values and goals instead of their organization.

What benefits would inspire people to stay for a long duration at their organization? Flexibility (35%) still tops the list, followed by skill development and career advancement opportunities (15%). There are, however, a few key differences in these factors based on the industry, generation, and work arrangements.

Different Generations Value Different Perks

The study found that different generations prefer different perks. While Gen X (35%), Baby Boomers (32%), and Millennials (31%) value job stability more, only 14% of Gen Z seem to value it. Besides higher pay, 23% of Gen Z value mental health as the top perk that inspires them to remain in their organizations than Millennials, Baby Boomers, and Gen X.

Baby Boomers (14%), Millennials (14%), and Gen X (16%) also prefer financial wellness benefits as a top benefit for staying with an organization than Generation Z employees.

Regarding ranking the perks (besides higher pay), 46% of Baby Boomers said flexibility in scheduling and working hours would make them stay longer with a company. Only 38% of Gen X, 31% of Millennials, and 24% of Gen Z employees said the same.

Not Considering Industry-wise Preferences May Result in Poor Retention

Besides different generations, people from various industries, too, have different preferences. Besides job stability, people in health services and education (16%) and hospitality/leisure (20%) are likelier to believe that passion for the industry/field is the key reason for working in their organizations. Furthermore, they are the industries to say meaningful work is the top reason to work in their organizations. Manufacturing (6%); trade, transportation, retail, and utilities (5%); and other services (4%) least likely rank passion as the top reason to work with their companies.

People in financial services (29%) are likelier to believe greater commitment by the organization to work/life balance is a reason to remain in an organization. This is followed by flexible work (20%) and career advancement and skill development opportunities (3%). People working in construction (24%), leisure and hospitality (27%), and business and professional services (20%) are likelier to consider financial wellness benefits as the number one reason to remain in their organizations for a long time. People in manufacturing (9%); health services and education (6%); and trade, transportation, retail, and utilities (13%) are least likely to rate financial wellness as the number one reason.

What Companies Can Do To Retain Employees

Given that employees across different industries and generations value different things in an employer, here are a few things organizations can do to retain employees.

Identify ways to build flexibility into schedules

Various studies, such as the one from Future Forum, show that employees want flexibility in when and where to work. Employers can use polls to understand employee preferences to build flexibility in their work schedules. That said, they should also consider what the company can accommodate and create polls accordingly. Organizations can also leverage technology to make schedule flexibility possible.

Understand what employees value

As seen from the study, different generations value different benefits. Further, a few employees may be in-office, fully remote, or hybrid. Hence, companies can consider segmenting their survey results based on the generation and where the employees are located to offer benefits that meet their needs.

Invest in providing skill development opportunities

Employees want their companies to provide opportunities where they can expand their skills to grow their careers. According to a study conducted by GallupOpens a new window on behalf of Amazon, 66% of workers between 18-24 ranked learning new skills as the third-most important benefit while evaluating job opportunities. Hence, organizations should look into how they approach employee training and development investment. They should answer questions like how much they are investing, how they are delivering, and if it is aligned with the company’s strategic business priorities.

See more: Should You Conduct a Stay Interview? Yes, and Here’s Why

Have regular check-ins and stay interviews

Stay interviews offer the opportunity to understand how to better engage with the employee so that they are inspired to stay longer with the company. It also provides insights into what motivates people, especially the younger generations, to stay. Further, managers can also have regular check-ins as part of the organizational culture. All these help understand a person’s career aspirations and the support they need to succeed in their job.

Looking Ahead

In a job market where employees have the upper hand, organizations must take steps to retain valuable talent. A vital element of that is understanding what employees expect and why they stay with the company. Companies can improve employee retention by listening and understanding worker needs and delivering them while staying within their values and capabilities.

What do you think are the top reasons for employees to stay with a company? Let us know on FacebookOpens a new window , TwitterOpens a new window , and LinkedInOpens a new window .