According to recent research, employee turnover is going to become a much more important problem in the future. Globally, about 16.7 million workers are expected to leave their current positions, and within the next five years, the turnover rate is estimated to grow from 20.6 percent to 23.4 percent. Money has a lot to do with these growing rates. When it comes to compensation, there is something like a salary “sweet spot” that will keep an employee for two years or more. Those making above or below that rate are 45 percent more likely to leave their position. But more than money, studies suggest the problem might stem from an employee’s feeling of being undervalued or underappreciated. Those making higher salaries might have other, better options, and those with lower salaries may see them as an indication they are not valued. Recognizing performance and paying employees what they are worth are two of the biggest ways an organization can prevent turnover. But to keep top performing employees around in the long-term, companies must also offer smart perks, cultivate a sense of ownership and develop a winning corporate culture.
View Source: Fast Company