By | Jennifer Liu | www.cnbc.com
Employers are prepared to give raises to stymie the Great Resignation this year, but according to one analysis, more money might not be the best way to keep star employees.
The research, published in the MIT Sloan Management Review, found that the most important indicator of employee retention was the opportunity to make a lateral career move. In fact, the opportunity for a lateral move was 2.5 times more important than pay in predicting employee retention, and 12 times more effective than offering someone a promotion.
The data considered turnover from April to September 2021, Glassdoor reviews from the last few years (including before the pandemic) and 172 culture metrics at roughly 600 companies.
If you think about it, people have spent the last two years of the pandemic — on top of ongoing racial justice movements, climate change disasters and mental health challenges — reevaluating how they want to spend their time.