50 years later, not much has changed as to why people stay or leave their jobs
Do you ever wonder why some employees stick with their jobs while others quit? What makes them happy or unhappy at work? How can you keep them motivated and productive? These are the questions that Vincent S. Flowers and Charles L. Hughes tried to answer 50 years ago in their groundbreaking study “Why Employees Stay”, published in the Harvard Business Review in July 1973. They surveyed 406 workers from three different companies and discovered two key factors that influence their decisions to stay or leave: how they felt about their jobs and what else was going on in their lives.
Just 2 Factors
The first factor was job satisfaction, which was how much an employee enjoyed, valued, and grew from their work. The second factor was environmental reasons, which were the things outside of work that affected an employee’s choices, such as money, family, friends, community, and other job opportunities. The study actually found that these two factors were not independent, but rather interacted in complex ways. For instance, an employee who hated his or her job may still stay because of strong environmental reasons, such as a high salary, a mortgage, or a spouse’s career. On the other hand, an employee who loved his or her job may still leave because of weak environmental reasons, such as a desire to relocate, a better offer from another employer, or a personal crisis.
The Four Types of Employees
The authors also identified four types of employees based on their levels of satisfaction and environmental attachment:
The committed employee, who is happy and loyal.
The marginal employee, who is unhappy and unattached.
The hostage employee, who is unhappy but attached.
The mercenary employee, who is happy but unattached.
So, how do you manage each type of employee? The study suggested different strategies such as giving praise, feedback, and challenge to the committed employee; offering counseling & training to the marginal employee; reducing stress, increasing autonomy, and improving communication to the hostage employee; and enhancing loyalty, involvement, and commitment to the mercenary employee.
50 Years Later
You might think that a study from 50 years ago may be outdated and irrelevant today, but we at SalesFirst Recruiting aren’t so sure. Throw in some updated nomenclature, make a couple of adjustments for today’s workforce, and you’ll probably find that the factors that affect employee retention and turnover have not changed much over time. In fact, some of the environmental reasons that the authors mentioned, such as family ties, friendships, and community relations, may have become even MORE important since the pandemic.
What do you think? Check out the study and apply its insights to your current challenges and opportunities. Is it still relevant for your company?
