WHY PEOPLE REALLY LEAVE THEIR JOBS - IT’S NOT ALWAYS FOR MONEY
by Mark Shlien
During the many years that I’ve placed people in insurance agencies, I’ve asked them why they were interested in leaving their current positions. Conventional wisdom would make you think that most people leave for more money, and some people do. However, although money is important, it’s not the only reason why people leave. Employees want to receive a fair wage for what they do and have reasonable benefits. They also want to be rewarded for doing a good job with an annual raise or bonus. When they believe their pay is fair, they begin to focus on other factors that create job satisfaction. When they have needs that their current work environment isn’t meeting. They might believe the only way to meet these needs is work elsewhere. Here are some of the most common reasons why people leave:
- Financial recognition. Agency management walks a fine line between paying good wages and overpaying or underpaying. Some state associations publish salary surveys, but in general, there’s little good information about salaries, particularly for non-service positions. As a result, some agencies are underpaying their employees. When market conditions take their toll on agency revenues, some agencies decide to forgo raises, but don’t replace the raise with a cash bonus or other short-term financial recognition. For key employees, financial recognition can take the form of deferred compensation, additional benefits, or ownership. An agency that wants to grow and maintain a certain level of success needs to share the wealth with the people who are helping it succeed.
- Mergers and acquisitions. After the sale of a business, employees must deal with a variety of changes, including a new organizational structure and position eliminations, a new compensation plan or reduced benefits, new management, and sometimes a new computer system. Employees who hoped for ownership might be disappointed, and others might fear that they’ve lost their opportunity for advancement. When changes in ownership occur, it’s critical to communicate often and listen to the concerns that employees express.
- The recession and the soft market. Declining revenues have forced agencies to cut costs by implementing new technologies, streamlining procedures, and outsourcing work overseas. As these productivity improvements have occurred, agencies have also reduced staff or not replaced positions when employees leave. As a result, some employees are struggling to keep up with the new demands or new ways of doing things. They might need additional training or management support in order to succeed. Without this support, employees might become discouraged and be more interested in leaving.
- Uninvolved management. In some agencies, principals are busy with their own accounts and the day-to-day demands of running an agency. They’re often unaware of the aspirations of the people who work for them. When owners and managers don’t conduct annual reviews or have one-on-one meetings with their employees, they can fail to learn about their interest in taking on more responsibility, pursuing an opportunity, or moving into a different position in the agency. In these situations, employees often believe they have no other choice but to leave.
- Poor morale. Some agencies develop poor morale over time if employees don’t receive any management recognition for doing their jobs. In these agencies, management doesn’t pay attention to employee concerns or recognize their employees. Often management doesn’t believe that employees should have a voice or that their concerns are important. They might believe that employees don’t see a slow computer system or lack of training as important. Management might also believe that CSRs don’t need recognition when a producer retains a big account or that they don’t consider flextime important to help them meet their family demands. In these agencies, some employees will deal with poor morale, while others will leave for a more employee friendly company.
- Poor sales support. Some agencies focus more on retention than on new business sales. When talented salespeople work in these agencies, they want the resources and support to produce additional business. In some situations, the principals don’t want to spend their time working with salespeople or helping them with lead generation or sales techniques. In other situations, producers need sales materials or other resources to help them management sales activities and sales success. When management fails to focus on new business and growth, these producers can become discouraged and seek other positions.
Any successful agency needs to retain its top people by listening to them, providing resources and financial incentives, and solving problems in a timely fashion. Developing a positive work environment that offers opportunity for growth and recognition and in which management appreciates employees will find it far easier to retain employees and maintain continuity.
Mark Schlien is the principal of iPeople, LLC, an executive search and recruitment firm for the insurance industry. You can reach him at iPeople, LLC, 611 Pennsylvania Avenue, SE, Suite 311,Washington, DC 20003; (202) 544-7675: (202) 544-0550 (fax); (202) 415-1599 (cell); e-mail: [email protected];
Web site: www.theipeople.com.