More employees, executives included, are quitting their
jobs for better offers elsewhere.
Voluntary turnover increased in the 12 months ending in
May, with the rate now standing at 11%, a new survey indicates. About a third of
employers surveyed by Compensation Resources Inc., a Saddle River, N.J.,
consulting firm, say this pace is higher than the prior year. Another third say
it's about the same, while about one-fifth report that fewer employees quit.
Among industries, employers in business services heard "I
quit" most often, with 20.7% of their employees choosing to leave. Companies
primarily in sales followed with a resignation rate of 13.4%. Only 4% of
executives quit their jobs voluntarily.
Human-resources consultants and recruiters say employee
mobility gained even more steam in the past six months as employees left for
increases in pay and better opportunities for advancement, all fueled by an
improving economy.
Turnover should continue to grow in the coming six months,
with nearly two-thirds of recruiters surveyed by ExecuNet saying they're
confident or very confident the executive employment market will improve during
this period, up from 56% in September. According to the online
career-management and recruiting network for
executives, recruiters expect a 20% jump in client assignments over the next few
months.
Alan Johnson, managing director of Johnson Associates Inc.,
a consulting firm specializing in compensation and turnover issues, says the
recent increase seems more dramatic because voluntary turnover during the past
two years has been abnormally low. He expects the upward trend to continue for
the next year or two.
"We're going to see turnover from the executive to the
front lines," says Roger Herman, chief executive officer of the Herman Group, a
Greensboro, N.C., consulting firm that focuses on workforce trends and
strategies. He also notes an increase in recruiting, especially "stealth"
recruiting, where employers reach out to candidates without publicizing their
openings.
Candidates, for their part, are job hunting on the sly,
making sure they have a new position secured before they resign their existing
jobs. "They're being very, very discreet and deliberate about the steps they're
taking to really create that opportunity before they jeopardize their current
job," says Liz Ryan, chief executive officer and founder of WorldWIT, an
organization that facilitates businesswomen's networking.
Industries
Employee mobility is greater in business services because
it includes such fields as accounting, consulting and law, which typically
involve transferable skills. Sales professionals also tend to be more mobile for
the same reason.
With transportable skills, it's easy to shift from job to
job, says Rick Beal, a senior consultant with Watson Wyatt Associates, a
Washington, D.C.-based consulting firm. "You're going to have more willingness
and ability to move," he adds.
Executives tend to be more cautious as a group because of
the difficulty involved in finding another job if a new position doesn't work
out. "Executives as a rule are more conservative about taking jobs...and slower to
jump ship," Ms. Ryan says.
A Lawyer Moves On
Lawyer Andrew Shackelford decided to leave his job in July.
He had been an associate with Fragomen, Del Rey, Bernsen & Loewy LLP, a law firm
based in New York that specializes in immigration services for corporations.
After three years in the same job without moving up, he had enough.
"Nobody wants to feel like they're stagnant," he says.
Mr. Shackelford found a new position as director of client
services for VisaNow.com, a legal company in Chicago that helps immigrants
prepare and submit applications for visas, permanent residencies and
citizenship. The 32-year-old says he enjoys the opportunities a smaller company
offers. "I feel like I can make this job what I want it to be," he says.
A Customer-Service Manager Explores Her Options
Susan Strucinski O'Keefe spent nearly 25 years with a large
telephone company in sales and customer service, most recently as a manager and
instructor. She says she expected to retire with a gold watch on her 30th
anniversary. "I grew up in the telephone industry," says the 47-year-old Chicago
resident.
But after the company merged with and acquired other
organizations, it became more impersonal than when she started. Newer employees
earned more money for performing the same job due to changes in the compensation
program, and her retirement benefits were cut. After considering her finances
and her dreams, she walked away while she was still young enough to begin a new
career. That was 18 months ago.
Ms. O'Keefe experimented with different career options by
working as a substitute teacher at a high school and an adjunct professor at a
local community college. She also worked part time enacting a sick patient's
symptoms so that medical students could practice making a diagnosis.
Through her connections with the medical school, she met a
professor at the University of Illinois at Chicago. He helped create a position
for her as an assistant to the associate dean, which she started in August.
Among other duties, she coaches first- and second-year medical students in
business-communication skills and also serves as project coordinator of a new
course for third-year students. This position incorporates her management skills
and love of teaching.
"I would encourage people to go with their gut, trust their
heart," Ms. O'Keefe says. "Don't get stuck in a job that you feel is dead end,
because there really is another world out there."
A Senior Manager Resigns
Unlike many executives, Anna Nash, 48, didn't want to play
it safe and wait for another job to come along before she quit. In April, she
left her position as PepsiCo Inc.'s senior manager of e-business and sales
capabilities in New York after becoming frustrated by the lengthy
decision-making process and long hours at the company.
"I've always worked endlessly," she says. "I said, 'I don't
want to play this game anymore.'"
She's now catching up with friends, traveling and doing
yoga while considering what her next career steps will be. She's living off
savings and hopes to find another job in the New York area by the end of the
year.
"It's been the best thing I've ever done," she says of
quitting. "I recommend it highly."