When a worker decides whether to continue their career at the company they work for or seek fortune elsewhere, they often consider a large number of factors. Of course, this is if they are leaving the company of their own volition. Thoughts about a positive work environment, job security, opportunities for professional development, and fair compensation, i.e., salary, are usually the items looked at when evaluating employers, with the latter typically weighing the most.
Moderately satisfied Croats
All these benefits are expected year after year, and those companies that can and want to meet these expectations often have loyal employees who are easier to retain than those at other companies. In the U.S., for example, energy companies like Chevron or ConocoPhillips, which engage in the exploration and production of hydrocarbons, have the lowest employee turnover, with an average employee retention of over ten years. Among the companies that excel at retaining employees are Boeing and Lockheed Martin, where workers stay on average for eight years.
On the other hand, the IT industry is known globally, as well as domestically, as an industry that struggles to retain quality talent, so it is no surprise that Apple and Meta top the list of companies where employees stay the shortest time, averaging one and a half years. Also near the top of that list are Amazon and Tesla, where the average is also below two years. It should be noted that in all these companies, salary is very likely not the main reason for leaving and dissatisfaction, and in Croatia, according to the ‘National Satisfaction Index’ survey, it is precisely salary that keeps the majority of employees in a state of dissatisfaction.
– Unsurprisingly, Croatian workers are least satisfied with job valuation in terms of salary, but also other benefits and opportunities for advancement. Additionally, a large number of workers do not feel a sense of belonging to the company and do not perceive the company’s successes as their own, and many also highlight a lack of support and care from their superiors – emphasizes Alen Mrvac from the MojPosao portal.
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Overall, in the aforementioned satisfaction survey, Croatian workers are not particularly satisfied, but neither are they overly dissatisfied with their current jobs. On a scale from one to ten, the average rating to the question ‘How satisfied are you with your job?’ was 4.59.
It’s not just about money
Sara Vatralj from Degordian, more precisely from the sister company Luppa, which deals with employee satisfaction and engagement research, says that although monetary compensation remains an important factor in retaining employees, there are a number of other key elements that domestic employees highlight as important for maintaining loyalty to their employer. Among the main ones, Vatralj emphasizes, are the balance between private and professional life and communication and collaboration with colleagues within the company.
Companies are increasingly recognizing the importance of work-life balance for employees. Flexible working hours, the possibility of working from home, or aligning working hours with individual employee needs are becoming key factors that companies offer to promote employee satisfaction and loyalty. The pandemic has significantly contributed to this, showing that combining office and home work increases employee satisfaction.
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– Another key element in retaining employees is the quality of communication within the company as well as collaboration between employees. Teamwork, shared goals, and support among colleagues create a positive work environment that fosters employee loyalty – explains Vatralj.
Almost all the aforementioned benefits are nurtured in the domestic IT company Span, which currently has over 850 employees, and they say that employee turnover at the Group level is 8.03 percent, which is the lowest turnover rate in the last five years. This is particularly good news considering that the IT sector has faced many challenges in attracting and retaining employees since 2022.
Autonomy and ideas
– We have successfully resisted this trend for the second consecutive year and are recording a decrease in turnover, which in previous years was 10.45 percent, significantly lower than the industry average, which for 2021 was 20 percent according to Gartner – says Daria Loos Glebov, senior learning & development specialist at Span.
Regarding the reasons for leaving, Loos Glebov states that at Span, according to surveys that employees fill out during the offboarding process, the most common reason is moving abroad, which is a significant life decision that employers can hardly influence.
However, it seems that Span is doing better than many companies, especially in the IT industry, and Loos Glebov says that the reason for this is that they ‘listen to the pulse of the organization through various metrics’ and actively respond and even prevent departures by selecting future employees. They also highlight a very important point, which is transparent communication between employees and management and openness in giving and receiving feedback among all employees.
– Perhaps the most important thing for our employees is the fact that all Span employees have a defined career path, enough autonomy at work, and the opportunity to turn their ideas into action – concludes Loos Glebov.
Public institutions
In addition to the IT sector, high employee turnover also occurs in public institutions, but mostly for different reasons, as noted by Deloitte. The problem for such companies is that they struggle to attract quality managerial staff, who prefer to choose higher salaries in private companies. Although many did not want to respond to Lider’s call, they told us from HZZ that their turnover is relatively low, but they are increasingly facing employee departures.
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– At HZZ, we are also facing a situation where employees leave for better-paid jobs. We believe that the new Salary Law in state and public services will equalize earnings in that sector according to the principle ‘equal pay for equal work’ and thus reduce income inequality and subsequent turnover within the public/state sector based on earnings – they emphasize.
In conclusion and simplified, companies that find it hardest to retain their employees are those that do not care for their employees and operate under the old adage ‘if you won’t, someone else will’. However, in ‘more normal’ companies, the challenge of retaining good employees has become a priority, and a good benefits package and a clear career path can often bring about the necessary change and tip the balance in favor of retention.
