In my last post about how there is a growing schism between the values held by employees and those held by their employers, and how it’s driving employees out the door.
I noted that 54% of millenials are planning on leaving their firms to try entrepreneurship. This is a big number, but even that is dwarfed by a study by Harris Interactive that found 74% of employees of all ages would look for another job if they could. The reasons? According to Alan Hall, Accenture reports that 31% don’t like their boss, 31% feel unempowered, 35% are tired of internal politics and 43% don’t feel recognized for their work.
A 74% level of employee dissatisfaction represents a costly vulnerability for companies, especially as affordable health care and technology reduce the costs for employees to take the risk of entrepreneurship. Projecting forward, the cost to a dissatisfied employee going out on their own is going down as a percentage of their annual salary, while the relative costs to the employer to replace them are on the rise. Today employers can spend 150% or more of a skilled employee’s annual salary recruiting and training their replacements.
While the cost to replace a low-skilled worker is decidedly less than this, many of the people leaving are the most emotionally intelligent and creative. When so many analysts point to both these qualities as keys to competitiveness, on a company- and economy-wide scale, creative brains draining from cubeville should be of concern to employers (though it might actually be good news for the entrepreneurial economy. Continue reading