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Survey: Inadequate pay prompts employees to engage in “quick quitting”
Posted by Kanika Sinha
April 13, 2023
While quiet quitting worried employers earlier this year, they’re soon going to have another headache to deal with. SkyNova, an invoicing software company, labels the latest trend “quick quitting” — and it’s just what it sounds like!
According to SkyNova’s new report, employees are increasingly leaving less than a year after joining an organization for several reasons, including inadequate pay, lack of benefits, toxic work culture and burnout.
So, what are these quick quitters doing after they quit? And how can organizations put an end to quick quitting?
Let’s find answers to these questions and more by perusing the survey findings.
Key survey findings
Surveying 500 employees, and 632 managers and HR professionals about quick quitting and what they believe will help prevent it, Skynova has come up with the following key findings:
Why quick quitters quit
The number one reason for quick quitting was inadequate salary, with 54% of employees citing this reason for leaving their jobs within a year of starting.
Other most common causes employees quit quickly per survey are outlined below.
Insufficient pay – 54%
Toxic work environment – 47%
Insufficient benefits – 47%
Lack of communication – 27%
Burnout – 25%
Feeling unappreciated – 22%
Poor company culture – 17%
Inadequate training – 17%
Switch industries – 15%
Found a better job – 13%
Lack of PTO – 13%
Interestingly, the survey reveals that these reasons differed among generations as well as industries. While 55% of millennials quit due to insufficient benefits, 27% of baby boomers left a job because they felt unappreciated and 25% of Gen Zers stepped down due to burnout.
Similarly, in terms of industries, while the top cause of quick quitting in the IT industry was found to be insufficient benefits, most health care workers cited toxic work environments as the primary reason for leaving their new jobs.
What actions did quick quitters take before leaving?
The survey finds that quick quitters did not leave without taking action for their concerns. Illustrated below are the measures they took to address their problems with their employers before leaving.
The majority of the quick quitters surveyed found better salaries and benefits in their next jobs; 57% of these employees reported pay raises and 56% better benefits in their new roles.
That said, the salary or benefits of a large proportion of quick quitters stayed the same between quitting and their new jobs; 39% reported receiving the same compensation package and 40% getting similar benefits at their new job.
How employers can prevent quick quitting
Comparison of the viewpoints of employers and employees on what they believe will encourage workers to stay put yielded some interesting data, as outlined below.
Across all generations, hybrid or remote work was the top thing employees said would keep them working for an organization.
While 51% of employees believed having the option for hybrid work would prevent quick quitting, employers saw it differently with only 37% agreeing.
Most employers (73%) were of the opinion that higher salaries would make employees stay longer, compared to just 24% of employees. Instead, employees were much more likely to name benefits, such as sufficient sick time (50%), adequate PTO (40%), option for remote work (37%), sufficient health insurance (34%) and 401(k) matching program (33%) as reasons to stay.
Comparing across industries, the health care industry cited adequate sick time as the best way to retain employees. Meanwhile, almost half of IT workers said sufficient PTO would help employees stick around.
In light of the above, here’s what employers can do to nip quick quitting in the bud before it becomes a serious problem.
Research what it is that candidates are looking for in their new roles and organization.
Keep benefits and the work environment at the forefront of retention strategies.
Ensure to keep the promises they gave their job candidates at the time of hiring.
Set a clear standard of what to expect from a job from the beginning and show the same honesty, consideration, loyalty and respect as they expect their employees to show.
Strive to make a great first impression in the same manner as they expect from their employees.
Want more? In addition to HR, benefits, recruiting and payroll through its PeopleOps, Escalon’s Essential Business Services include FinOps (CFO services, taxes, bookkeeping and accounting) and Risk (business insurance). Talk to an expert today.
This material has been prepared for informational purposes only. Escalon and its affiliates are not providing tax, legal or accounting advice in this article. If you would like to engage with Escalon, please contact us here.