Korn Ferry conducted a survey of 10,000 professionals across various career stages, from entry-level roles to CEOs, in six key markets: the USA, the UK, Brazil, the Middle East, Australia, and India. Striking facts unveiled by the survey have shed light on the evolving priorities of the workforce and how conforming to the current trend can lead employers to attract the best-in-class talent.
Key Factors Employees Consider When Choosing a New Job
‘What is the salary structure?’ This is one of the most asked questions by employees while considering a job offer. However, statistics revealed by Korn Ferry’s Global Insights Report: Workforce 2024 present a surprising difference while it comes to employee choice in terms of work conditions. Salary ranks at the second place, while the first rank has been clinched by flexible working hours in the employees’ preference list for a new job. This is the top choice among all age groups. While for several age groups money is also a leading priority, flexibility has not taken a backseat. The blanket of work flexibility also includes allowing employees to work from wherever they want.
Apart from these three significant parameters that profoundly influence the decision of job seekers, there are a few more factors: Learning and development opportunities, diversity and inclusion, etc.
Critical Factors Influencing Employee Retention Rates
According to the study, the top six factors that employees consider while it comes to staying in a job are: Financial perks, flexible working hours, job security, helpful colleagues, great managers, and development opportunities. Flexible working hours continue to be a top priority for employees. Moreover, job security and a positive workplace culture are key contributors to improving retention rates within companies.
Key Reasons For Leaving a Job
According to the survey, employees have cited three primary reasons for leaving their jobs: Insufficient compensation packages, concerns about job security, and limited opportunities for career growth. When salaries do not align with industry standards or fail to reflect an employee’s contributions, dissatisfaction can arise. Additionally, perceptions of instability within their roles can demotivate employees to remain with an organization while the absence of clear avenues for professional advancement often drives them to explore new opportunities.
Job Preferences of the Indian Workforce
In India, individuals aged 35-65 view learning and development (L&D) as the most important factor for career growth, more than any other age group, finds the study. Meanwhile, younger respondents, aged 18-24 and 25-34, place a higher value on flexible working hours as their top priority. An impressive 81% of Indians, surpassing the global average of 64%, are optimistic about how AI will transform their work. Furthermore, 74% believe that integrating AI into their jobs will boost their career prospects and increase their professional value. Here are some more interesting findings about the job preferences of the Indian workforce.
Top Lessons for Employers
The Korn Ferry survey highlights the shifting demands of the current workforce, making it essential for employers to address employee needs in order to improve job satisfaction and reduce attrition rates. Here are some essential learnings for employers to draw from the report.
Create an employee-friendly workplace
The report underscores the evolving preferences of the workforce and how flexibility and positive work culture have taken a centrestage in employee preferences. They are not buzzwords anymore, but a crucial mandate. Micromanagement and the creation of claustrophobic spaces can not only negatively impact productivity but will also lead to higher attrition rates. Cultivating a positive work culture is the only answer to high attrition rates.
Offer a competitive salary package
Globally, 40% of employees feel that they are underpaid, finds the report. Remuneration is always one of the biggest factors when choosing a job opportunity or making a decision to switch. Ensure your workforce is being paid according to the industry standards. Evaluate their performance on a regular basis and offer them incentives and bonuses on the basis of the efforts and skills they have put in.
Strengthen Job Security
With the current job market being dominated by layoffs, job security has become a prime concern for employees. Employers must ensure that they are mitigating the apprehension of their employees and ensuring them that their efforts matter. Half of the workforce under 44 years of age feel that they can be replaced by AI, reveals the survey. This can lead the younger workforce to exit and discover other arenas. Employers need to have a positive conversation with their employees and reassure them that AI cannot substitute human intelligence, empathy, and decision-making skills. This will reinstate their confidence in their abilities.
Provide adequate learning and development opportunities
Learning and development (L&D) opportunities are of prime focus for the Indian workforce. 67% of the employees surveyed responded that they would stay at a workplace they dislike if it offers apt learning and development opportunities. With the huge influx of Gen Z and millennials in the workplace who have a major focus on upskilling, L&D has come up to take the front seat in job preferences.
Facilitate growth opportunities
Companies that provide the right breeding ground of opportunities to their employees are more likely to have a highly satisfied workforce. Providing promotions or new projects which have their own set of challenges and learning opportunities, will undoubtedly enable team members to hone their skills and enhance their job satisfaction.