Human resources experts have identified one reason why people quit their jobs, and it is not a pay rise. This position has been vehemently criticized by people who believe that pay remains one of the biggest factors why people leave organizations.
The debacle began after a human resources software expert asked, “Which of the following items might help an HR professional drive employee retention and success?” The options on offer were: a ping-pong table, additional responsibilities, and a pay rise.
While users will readily pick “a pay rise,” the expert software chose this as the wrong answer. The software then offered: “Often when an employee leaves, it’s not about the money. A good exit interview can help determine the real causes of employee discontent.”
The influence of money cannot be overstated. Although people are still quitting their jobs despite palatable salaries, it is still speculative to believe that providing a ping pong table will keep them ahead of a pay rise.
A study by MIT’s Slogan School of Management suggested that “a toxic culture is 10.4 times more likely to contribute to attrition than compensation.”
A pay rise can be a great motivation for workers, and technology companies understand the importance of it. This explains why technology companies like Microsoft, Meta, and others raise wages to get them to stay longer.
The sources for this piece include an article in ZDNet.