employee loyalty is fleeting By Andrea Hansen, B.Comm, CFP, GBA, President and Benefits Advisor at Sutton Benefits & Pension
A
s COVID-19 subsides, we are
seeing the predicted “turnover tsunami” emerge. The
Canadian Workplace Culture Index recently conducted
a survey that revealed 77 per cent of employees in the Prairies would leave their job for the same position at another company for a 10 per cent raise. The same study showed that 96 per cent like the people they work with and 91 per cent like where they work . So why
would the majority leave their job for a 10 per cent increase in pay?
The pandemic has been unpredictable. There has been economic uncertainty,
food insecurity, and isolation. Most of us have missed out on experiences and life milestones, like graduations, weddings,
emotional, and mental stress, and many factors have felt out of our control. So,
we focus on things we can control. And when financial stress is a factor, taking
a job for 10 per cent more pay can seem attractive.
and funerals. We have been cut off
What can employers do to sustain loyalty?
and we have been required to follow
The 2021 Manulife Canada Retirement
effort. We are experiencing financial,
revealed intriguing statistics – and the
from hobbies or favourite activities,
safety protocols that take extra care and
Study on stress, finances, and well-being “stress paradox”. The financial position of Canadians has improved, but stress has worsened! Overall, Canadians’
disposable income rose 10.8 per cent
in the early part of the pandemic with a decline of 13.7 per cent in spending
and an average household net savings of $10,507. Yet twice as many people reported general or financial stress during the pandemic, compared
to before the pandemic. Half the
respondents said they felt stressed often and four in 10 said their state of mental health interferes with their ability to
work. “70 per cent said they would be more productive at work if financial worries did not intrude.”
Not knowing the right investments to
make, how much to save for retirement, what is needed for an emergency fund, or how to reduce debt are just a few
examples of the knowledge gap that is
driving a lot of that tension and stress. It
makes sense that “80 per cent say having a retirement plan is a critical company benefit” and “60 per cent report they
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