Suppressed demand for new jobs will hit employers

A new survey by Insync Surveys adds to the growing evidence of a likely surge in staff turnover as the job market picks up.

The Insync Surveys Retention Review, based on 1,548 employee responses, also provides insights into the reasons employees leave their employer.

Interestingly, fewer departing employees are now indicating a 'lack of job satisfaction' as their number one reason for leaving, selected by 10% of employees in 2009 compared to 14% in 2007.

However, 'work stress' and 'job security' are increasingly common. There is also a decline in 'pay and conditions' as a driving influence in one's decision to leave.

James Garriock, Insync Surveys CEO said: "Employees aren't happier; they just haven't been leaving due to dissatisfaction. It's been two and a half years since the first Insync Surveys Retention Review and the employment landscape has changed. Labour supply exceeded demand during 2009, but unemployment didn't rise to expected levels. Instead, the majority of employees stuck by their employers."

Garriock added that many employees who stayed were asked to make sacrifices during 2009, such as taking leave without pay, pay cuts, forced annual leave or doing more work when departing staff weren't replaced.

"It's safe to assume that many of these people are now deeply dissatisfied with their employer and will leave when the job market recovers," he said. "We're therefore predicting turnover to be above the long-term average by the second half of 2010 if job supply trends continue."

Not surprisingly, Garriock said retention initiatives will be more important in 2010 than at any time in the last few years.

The new report also examined the differences in women and men's reasons for resigning. While work related stress affects everyone, it caused more women to leave in 2009 than men. The report suggests that workplace stressors, such as inflexibility and a lack of resources, are a larger factor in a woman's decision to leave. Women also indicated a stronger propensity to leave in seeking work/life balance.

"If employers are to stand a chance as job supply picks up, they need to understand why people are ready to leave and act on these problem areas. Employees are out of the woods, but the organisations they work for aren't," said Garriock.