Thursday, November 16, 2023
Why Are People Leaving Their Job?
In the fast-paced world, where no one stays still it’s not surprising that many are jumping job to job. Malaysia in particular struggle with this, as young employees are no longer staying in their job for more than two years. This issue can be attributed to the transformations occurring in Malaysia's economy and labour markets, causing a shift in how talented individuals perceive and approach work. Let’s dive deeper to have a better understanding of why people are leaving their jobs and how you, as employers can help retain your skilled workforce and attract new talents.
Top reasons why people are leaving their job
Looking for job security
It’s clear that the younger generations are more motivated to strive in their career, and to look for jobs that can provide them stability. A study from Randstad has revealed that over 33% of Malaysians are planning to switch jobs this year due to their fear of job loss. This motivates them to opt for a job with better security. It was revealed too that this fear has intensify as people get older where millennials and gen x-ers are motivated by 42% and 29% to change jobs.
With the current inflation and cost of living crisis, attractive salary and benefits has been the most important Employee Value Proposition (EVP) factor to Malaysians. In the Ranstad report, attractive salary and benefits is one of the elements of an ideal employer for Malaysia’s working community. Comprehensive support such as non-monetary benefits is found important by 87% respondents of Ranstad’s employer brand research 2023.
Employees are focused in their job search to find a company that could provide them the financial flexibility that they strive for. With the current trend of employee benefits, financial employee benefits have served to be attractive for many employees for example Earned Wage Access and Loan Assistance.
Unstable work-life balance
Since the pandemic, work life balance has rised up the ranks when it comes to job requirements. According to Randstad Malaysia’s Workmonitor survey report, many employees are willing to resign due to inflexibility. The mindset of work flexibility has emerged to guarantee a healthy work-life balance for employees. The idea of flexibility comes in a form of working hours and location where it was found that 47% of employees will disregard a job offer that enables them to choose when they want to work. Another 86% of the employees who took the survey report by Ranstad also voiced out the importance of having flexibility to work remotely.
Lack of growth opportunities
Many employees found career growth vital. However, according to Ranstad, only 61% of them are offered adequate development opportunities by their employers. This lack of career development and growth opportunities has driven employee's attrition as they are seeking a better future elsewhere. Global Talent Monitor reported that 40% of the employees found lack of future career development as a dissatisfying factor in their job.
What can you do as employers to attract and retain talents?
Provide competitive compensation
Your competitive benefits can go beyond work arrangements. Employers can also include financial flexibility through the implementation of Earned Wage Access (EWA). EWA is a financial service that allows employees to access a portion of their wages before payday. EWA helps employees to manage unexpected expenses and prevent them from opting high-interest loans. Implementing EWA is a proof of care for your employee's financial well-being which helps to reduce financial stress and improve overall well-being.
Here at Paywatch, we are able to help companies increase their employee retention by 78%, saving their annual rehiring cost. Rebalancing your financial system with Paywatch by providing fair financial access to all employees further reducing their financial stress by 66%.
Career & growth opportunities
Investing in professional development opportunities is another way to retain employees. By offering training programs, educational reimbursements, and growth opportunities, organizations show that they are invested in their employees' career progression. This helps foster a sense of purpose and growth within the organization, reducing the likelihood of employees seeking opportunities elsewhere.
Employee recognition and rewards
Awards and recognitions play a crucial role in employee retention by fostering a positive and motivating work environment. When employees feel valued and appreciated for their contributions, it leads to enhanced morale, engagement, and loyalty.
This, in turn, reduces turnover and keeps top talent within the company. By actively recognizing and rewarding employees, companies cultivate a culture of appreciation that inspires creativity, productivity, and a sense of belonging.
In summary, the rising turnover rates in Malaysia's workforce stem from factors like job insecurity, dissatisfaction, work-life balance issues, and a lack of growth opportunities. To retain skilled talents, employers should focus on providing competitive compensation, flexible work arrangements, and financial support, such as Earned Wage Access. In this evolving work landscape, prioritizing employee well-being and professional growth is key to retaining top talent and staying competitive.