Labour market opens up along with economic growth, which is more and more felt in many countries. According to “Preparations to resignation” analysis conducted by Hay Group partnership in 21 countries on 700 mln employees, the number of people in the world who decide to change their occupation in 2014 will increase to 167,1 mln, which makes 12,8 per cent increase in relation to 2012. In subsequent five years, mean values of turnover rates are supposed to increase from 21 per cent to 24 per cent.
The unfavourable situation in the labour market related to business depression held turnover rates on a low level in many companies. As the economy returns to prosperity and the labour market becomes more stable, dissatisfied employees all over the world will raise the risk of losing human resources. In order to prevent high value employees from leaving the company in search of more favourable work conditions, the organizations have to face the challenges connected with the engagement of the workers and their support – comments Agnieszka Milewczyk, Managing Director of Hay Group Poland.
Emerging markets and Europe
Hay Group specialists predict that the number of people deciding to quit their job will reach 198 million in 2018 and the increase of staff turnover will primarily concern emerging markets. The highest increase of staff turnover worldwide will be recorded in Asian markets and Pacific region – from 21,6 per cent in 2012 to 25,5 per cent in 2018 and also in Latin America (in 2016) and North America (in 2014 and 2018).
The increase of turnover in Europe will come not until 2016, then it will amount to 19,5 per cent. Markets of South Europe will still stay far behind. According to Hay Group research, in countries such as Italy, the increase of turnover will occur in 2016. More violent increases are to be in 2015 (to the level of 13,5 per cent) and in 2016 – 14,2 per cent. Thereafter, the turnover will increase slower with the development of service sector.
The challenge for employers
The turnover of workers will induce the employers to offer better and better work conditions. Employees who plan to stay in a company for longer than two years judge their employers more favourably than those who plan to leave their company in a mentioned period with the number above 20 percentage points as regards such factors as: confidence in the management, possibility of career advancement, autonomy, supportive work environment and adequate remuneration.
As the retention of employees transforms to the employers into a serious problem, not only in respect of key importance workers for the company, but also in respect of line employees, the understanding of factors which contribute to the increase of engagement and loyalty among employees is essential to manage increasing risk of turnover in the coming months and years. It is high time for the organizations to understand their present situation and take the opportunity to keep the employees in the company – comments Agnieszka Milewczyk.