Job Security Concerns and Fear of Job Loss

Actual Comments of Why Employees Leave
“We were always worried about being on the chopping block because of jobs being eliminated so I decided since my security was at risk, I would find other more secure employment where layoffs were less common.”

The Solution
Although there are signs the economy may be improving, job security concerns continue to be a primary cause of voluntary turnover. HSD’s ExitRight research shows that exiting employees with the highest performance ratings, place greater importance on job security as a turnover cause. Employees know job loss is a risk when business conditions decline.

What are the alternatives available when exit data suggests turnover is influenced by job security concerns? Are layoffs avoidable? Exit interview data reveals what demographic groups, business units, locations, and functions place the greatest importance on job security. With this information, strategies may be developed to preserve the long term retention of the employee.

Some organizations have implemented innovative programs to help renew the employer-employee contract but in very different ways. Developing new programs that offer employees partial salaries (examples include 20% to 30% of their pay) plus reduced benefits for a specified period of time may be possible while the business recovers. Working half-time, job sharing, or offering voluntary leaves all help the company reduce costs by retaining the employee for the long-term, thereby avoiding costly training and hiring when the economy recovers. Depending on the employer offering the program, employees may be able to take another job (but not with a competitor) or may be asked to work at a non-profit organization associated with the organization. At the end of the specified time period, employees at the companies sponsoring these practices were able to work full-time again and most employees did return to full-time employment.

These companies have replaced layoffs and severance programs or employee buyouts with a creative solution that helped make the employer-employee contract stronger while reducing employees’ fears about losing their jobs. In addition, employers were able to reduce overhead and retain talent. This is a “win-win” for everyone.

(This blog post brought to you by HSD Metrics, an exit interview company that helps companies reduce employee turnover by providing automated reference checking, exit interviews, and by measuring employee retention. The comments from exiting employees that are featured in this blog are collected from actual exit interviews conducted using ExitRight, HSD’s exit interviewing service. Because we place the privacy of our clients at the top of our priority list; the names of all involved parties are kept completely confidential. Check our blog often for posts like this, to reduce employee turnover within your organization. If you are interested in learning more, contact us today.)