Why do employees stay with their company?

Today, knowing how to retain talent is more important than knowing how to recruit it. According to a study by Kronos, 87% of people responsible for human resources make employee retention a major concern. There are many reasons for this. Having to recruit frequently is costly. Not to mention the organisational problems that a resignation creates, not only in terms of the work process itself, but also in terms of cohesion and camaraderie, which become unstable. A high turnover rate reduces productivity. The ability to retain an employee also has an impact on corporate culture and employer brand image. In a context of latent resignation, knowing the main reasons for employee loyalty is therefore crucial for employers. A Willis Towers Watson study shows that "50% of all organisations worldwide struggle to retain some of their most valuable employee groups". To anticipate the problem, find out in this article why employees stay with their company.

1) Well-being at work

Firstly, employees continue to work for an organisation because they feel good there. Research by the Mind Foundation has shown that 60% of employees are more motivated when their well-being at work is taken into consideration by the employer. According to a study by Wildgose (2017), the same proportion of employees even think that this is far more important than salary.

The World Health Organisation (WHO) defines well-being at work as a state of mind in which the worker finds harmony at work satisfying. There is a balance between their needs, aptitudes, aspirations and the actual constraints of their work environment. Several factors can therefore be included in this broad concept of well-being at work. Here are some of the most significant.

• The comfort and attractiveness of the workplace: according to Gallup's State of the World's Workplace, only 15% of employees have a positive view of their workplace. The rest do what they have to do to get through the day and, as a result, have no emotional attachment to the workplace, let alone the company. They are more likely to resign.
  
  
• The working atmosphere, not only in relation to colleagues, but also and above all in relation to superiors. According to Harvey Mackay, an American businessman and best-selling author on entrepreneurship, "Employee loyalty begins with employer loyalty. Your employees need to know that if they do the job they were hired to do with reasonable skill and efficiency, you will support them". The atmosphere at work can also be relaxed and fun. According to the Harvard Business Review, a work environment in which the focus is on having fun and connecting with employees increases employee creativity, commitment and determination.
  
  
• A work process that meets their expectations. This includes flexibility, such as the introduction of a 4-day week or the possibility of working remotely. Collaborative research by Owl Labs reveals, for example, that 66% of workers who have been given the opportunity to telework would immediately start looking for a new job if this opportunity were to be denied. It's also about stimulating work that matches the employee's skills and expectations.
  

2) Bonuses

Secondly, despite changing trends on the subject, employees today still stay with their company because they are well paid. According to a Willis Towers Watson global survey of attitudes to benefits in 2022, 56% of employees said that pay was one of the main reasons they would look for a new job. 41% said "they would consider taking a job with another company for a 5% increase". According to a report by Employ Inc, a good majority of employees think they could earn more money by changing jobs.

According to a Robert Half survey in 2022, salary is still the number one criterion that makes a difference in the decision to join one company rather than another (71% of responses), far ahead of life balance and geographical location (37% and 32% respectively). Nor should we overlook benefits, which, unlike salary, can be more personalised. Rogers' Gray's research shows that 40% of workers would be more loyal to the company if "their benefits options were tailored to meet their individual needs".

3) Work-life balance

Employees also continue to work for the same company because they find it satisfies both their private and professional lives. The same Robert Half survey mentioned above puts a good work/life balance in the top 3 reasons for staying with a company.

It's all about having time for your private life. That's why teleworking and measures such as the introduction of a 4-day week are so popular these days. But it's also a question of separating private and professional life "clearly and distinctly", as confirmed by Automatic Data Processing's (ADP) "Reveal your talents" survey of 2,500 French workers.

4)  Opportunities for professional or personal development

Fourthly, employees often stay with their company because they have prospects. Having prospects helps them to avoid routine and to look ahead. This ability to look several years ahead encourages commitment.

On the one hand, there are career development prospects. A report by the Pew Research Centre reveals that 63% of employees have left their jobs because they lacked opportunities for advancement. The younger generation in particular don't see themselves doing the same thing all their lives. They want to evolve and grow professionally. Companies that are able to offer their employees a career plan are therefore more likely to retain them.

On the other hand, there are opportunities for personal development and, in particular, the chance to learn "something different". A Deloitte study found that organisations with a strong learning culture have "30% to 50% higher engagement and retention rates".

5) Horizontal and vertical integration

An integrated employee is one who knows his or her role and place in the organisation and is familiar with the work process and environment. This employee will be more committed and loyal to the company than one who is still in doubt. According to an analysis by Zippia, solid employee integration programmes reduce the turnover rate by around 31%.

Horizontally, good integration means having practices that encourage collaboration and teamwork. They create a spirit of camaraderie and a sense of belonging. According to a BetterUp Labs study, when the relationship between colleagues is weak, the intention to resign was 313% higher.

At the vertical level, a good integration is materialised by open communication between the employee and management. It's a question of listening and transparency, which will form the basis of a healthy and trusting hierarchical relationship. This quality of relationship is a "major factor in employee retention", according to Gallup's "State of the American Manager" report.

6) Job security and stability

It's true that millennials no longer make security and stability their main motivation for holding a job. However, the coronavirus crisis has brought these concerns to the surface. Today, a good number of employees remain committed to a company because it offers them stability and job security. These are the findings of a survey conducted by Paychex and Executive Networks. 46% of employees cited job security as one of the main factors that keep them with a company.

7) Strong, shared values, reflected in our corporate culture

Finally, employees stay with their company because they share the same values and fight the same battle. A global survey conducted by Right Management shows that "out of 91 possible factors, personal commitment to an employer's core values is the most important driver of employee engagement". Glassdoor also made a further finding: 56% of employees believe that a company's culture and the values it upholds are more important than salary (66% of Millennials). Conversely, 71% would look directly for a new job if their company's culture deteriorated.

Companies with a tangible set of values are more likely to attract and retain talent. These values must be felt in the day-to-day running of the company, from decision-making to the management of the marketing strategy and, of course, the administration of human resources.