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Why Do Employees Leave?

June 17, 2019

Today’s tight labor market and frequent employee turnover are challenging U.S. employers to view company cultures with a critical eye. A report by the Work Institute found that some 42 million (one in four) employees would leave their jobs in 2018. What is the cost of replacing so many experienced people in an organization? According to the report, last year’s “employee churn” costs hovered at $600 billion—a figure that could increase to $680 billion by 2020. Of further concern to companies is the growing realization that young team members are most inclined to move on after a relatively short period of employment. In a recent survey, 59% of respondents felt they should begin looking for a new position after only one to two years on a job. Older employees continuing to work past retirement age or re-entering the workforce are adding stability to many companies, but the turnover trend has serious implications for the long haul. Why are employees leaving and what can employers do to stem the tide? Data gathered by HR organizations and research firms reveal some interesting trends about motivating and retaining current and future employees.

 

Top 4 Reasons Employees Leave a Company

The current employee shortage has upended traditional hiring models. Companies are racing to reshape their corporate cultures and embrace the values of a more limited workforce. Although improved pay and benefits packages continue to be important, these four workplace problems are the leading reasons why employees pick up—and move on.

 

  • Not enough work-life balance. Team members value their time and don’t want employers to waste it. Their enthusiasm and performance will wane if they are weighed down with busy work and meaningless meetings. Younger employees appreciate flexible schedules, the ability to work from home, and a workload that is challenging without spilling over into personal time.
  • Poor management. Supervisors who are unable to engage their employees or unwilling to help them grow by providing positive feedback are commonly cited as reasons to leave. Today’s professionals respond to personal interaction and appreciate public shout-outs and ancillary rewards like gift cards, tickets, and free meal vouchers.
  • Lack of recognition & career advancement. Employees who excel like to be recognized for their extra effort. They also need to see a clear pathway for furthering their careers. Today’s staff members expect companies to help them grow professionally while providing access to career development and mentorship programs.
  • No company engagement. When a company does not have (or cannot properly communicate) its goals and values, employees lack a shared sense of purpose. Businesses fostering a sense of community are better able to inspire, engage, and retain employees.

 

Create a Satisfying Workplace to Keep Valuable Team Members

In many ways, today’s workforce is looking for the same type of job satisfaction as high performers of past generations. Respect, appreciation for a job well-done, opportunities for advancement, challenging work, and monetary rewards still lead to employee satisfaction and engagement. According to Gallup research, 34% of employees are engaged at work, but 53% are not engaged and likely to leave a job for another offer. To involve these employees and access their potential, employers are putting greater emphasis on corporate culture assets like these:

 

  • Relevant workplaces with a clear mission & shared values
  • New-hires who contribute to the corporate community
  • Greater creative freedom & autonomy for staff when possible
  • Updated technology to support performance
  • Employee input as valuable business partners

 

Learn More About The Act Regarding Student Loans and Employers

 

Student Loan Benefits Appeal to Workers of All Ages

Many young employees begin their careers with a heavy burden of student loan debt. They worry about the monthly toll payments will take on their starting salary. Will they have enough money to travel, buy a home, or start a family? Worries about student debt repayment are not limited to the youngest workers. Some data suggest that these concerns cut across age groups and include professionals over age 55. Older workers may have taken on student loan debt to fund advanced degrees or send a child to college. Widespread student loan debt suggests that companies offering repayment contributions and other related benefits have a distinct advantage in attracting and engaging their workforce.

 

 

Improve Retention With Cutting Edge HR Benefits From ELFI

As an ELFI business partner, you can add value to your benefits package with monthly contributions to student loan debt. You’ll also plug into resources like newsletters, webinars and onsite consultations. Connect with ELFI from your HR portal and discover how significant student loan benefits are to your team members—and how cost-effective they are for your company.

 

Tops Ways to Engage Millennials at Work

 

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2019-09-21
Facing Student Loan Debt? How The Right Job in School Can Land You the Right Job After School

When it comes to landing your first job after graduation and getting a strong foothold on paying back student loan debt, nothing is more important than standing out in the workforce. This doesn’t mean you should equip yourself with a gimmicky resume or a flashy outfit for going on interviews. The way to impress a prospective employer is with experience and skills suited for the position -- not only will this put you on track to paying back your student loan debt, but it will also set you up for long term financial success. When it comes to hunting for a job, college graduates can be put into three categories: ● Those who have waited until after graduation to look for a job. ● Those who have waited for a couple of months (while enjoying their last summer of freedom) before searching for a job. ● Those who have been planning their job search since well before their final exams. The latter understand that in order to give themselves an edge in the job market, they needed to start early.

Gain Work Experience While in College

There is often a catch-22 that applies to looking for a job after college: many entry-level positions require some experience, but you can’t gain experience unless you have already worked in that field. Although there are exceptions, one of the hard facts is that most employers prefer to hire a college graduate who has some work experience to put on the table. So, your best bet is to find part-time work in your chosen field while you are still in school. It might not be easy, as trying to keep up with a full course load and working at the same time can be a challenge. But the reward may be your dream job after graduation. ● Best-case scenario: You find a part-time job related to your field and then use your experience to segue into a full-time position once you have your degree. ● Worst-case scenario: You can’t find a part-time job directly related to your field, but you have demonstrated your ability to hold a job and you have some work experience to put on your resume.

Five Ways to Find the Right Part-Time Work

1. The Federal Work Study Program All federally accredited universities and colleges offer the
Work Study Program. This program matches students with job opportunities which are located both on and off campus. Counselors do their best to pick positions closest to your field of study. These jobs are paid at the minimum wage rate or a little higher and are assigned at a maximum of thirty hours per week. 2. Freelancing If you have certain skills, such as writing or graphic design, you can make some extra cash using freelance sites such as upwork.com and contentrunner.com. The beauty of this kind of work is that you can choose your own hours. There are many internet platforms that are searching for part-time talent – just be sure to research them carefully to avoid scams. Even if you find work that isn’t in the field you are aiming for after college, you will be demonstrating initiative to any prospective employer. 3. Volunteering Volunteering usually means that you won’t get paid, which while admirable, won't make a big dent in your student loan debt. But getting involved with community organizations, charities, animal shelters, etc. shows initiative, a sense of responsibility, and your ability to work with others. It is often easier to find an unpaid position in the field that you want to work in after college through volunteering or an internship. Simply, if you can afford to volunteer you'll likely refine the personal and professional skills that will last a lifetime. 4. Internships Finding internships in your chosen field is one of the best ways to land your dream job after college. Companies love internships because it’s an easy way for them to find talent with hardly any risk or expense on their part. Internships represent the lifeblood of college work experience because nothing beats a hands-on education. The best internship is one that will help you launch your entry-level career.

5. Career Services Department

Most colleges and universities have a Career Services Department whose main goal is to help students fine-tune their professional skills in hopes of landing a great job. From resume tips to mock interviews, they're a wealth of knowledge. Every day they're working with students just like you who have varying amounts of student loan debt and actively want to help you get rid of it! ● Why the Big Companies Aren’t Always the Best Choice: Many academic advisors recommend choosing internships in smaller businesses where they really need hands-on help so you won’t be stuck just making printer copies and coffee runs. Research a few local small to medium-sized companies in your field, and then contact their HR departments to ask whether they have programs for interns. Don’t forget to talk to your professors - they are probably aware of a few good companies that you can contact. As an added perk to employees, many companies are also adding competitive benefits, like tuition reimbursement, helping pay of student loan debt, or providing generous time off. ● When to Start Looking for an Internship - After your freshman year, begin to contact companies that interest you. A good resource is your college’s career-planning office. You may be fortunate enough to be enrolled in a college that offers grants to enable students to accept unpaid (or poorly paid) internships. Or you can consider combining a part-time unpaid internship in the field you want with other work that pays. Fortunately, some high-paying fields also pay their interns quite well, especially if those students are close to graduating.

The Bottom Line

Carefully planning your part-time jobs or internships while you are working toward your degree will give you the best chance of achieving your career goals. And the sooner you begin to earn money out of college, the sooner you can start to pay off your student loan debt. Talk to ELFI about our private student loan offerings by giving us a call today! Subject to credit approval. Terms and conditions apply. NOTICE: Third Party Web Sites Education Loan Finance by SouthEast Bank is not responsible for and has no control over the subject matter, content, information, or graphics of the websites that have links here. The portal and news features are being provided by an outside source – The bank is not responsible for the content. Please contact us with any concerns or comments.
2019-09-19
Adulting Tips: 8 Resume Keys to Help you Score that Next Job

Whether you are in the process of heading off to college, or you are graduated and looking to continue your path to financial freedom through student loan refinancing – the work ethic you developed to get into and through school will be a major part of your continued success. But as you enter or progress through your career, the way you present yourself holds even more weight. It’s time to start thinking of your personal brand. Your resume is a key component of how your personal brand comes across to employers. It’s your first opportunity to impress hiring managers and will determine whether you get that in-person interview. For these reasons, it’s essential that is promotes you in the best light possible. Follow these steps (and avoid these mistakes) to achieve the perfect resume.  

1. Customize it.

Submitting a vague, boring resume is a sure way to get yours moved to the bottom of the stack, or out of the pile altogether. No matter where you are in your career path, whether looking for a part-time job in high school, an internship in college, or applying for a job after school, you should always take the time to customize your resume to the job you’re applying for (check out Huffington Post’s tips for customizing your resume). But remember, a little goes a long way here.  

2. What does your email address say about you? 

Your prospective employer shouldn’t look at your resume and think “this person is cool.” In fact, you probably don’t even want them thinking twice about it. You should always avoid email addresses that use nicknames, profanity, or have humorous connotations. Use a simple email address that consists of variations of your first, middle, and last name. We love the tips on creating a professional email address from Hubspot.  

3. Organize it.

You want the employer’s eyes to be drawn to the most important parts of your resume – so be sure to highlight them and make them prominent. If you’re fresh out of school with no work experience, highlight your academic accomplishments; if you didn’t have a great GPA in school but have good work experience, highlight the experience first. Know what your selling point is and prioritize it over your supporting facts.  

4. Don’t be passive or lazy in your use of language.

Showing laziness in your resume? A recipe for unemployment. Be sure to explain your duties at each job, and don’t sell yourself short. Even if two jobs are similar in nature, be sure to express how the experiences were different because it will exemplify some versatility. Using statements like: "same as above" and "etc." when writing your resume shows poor effort and undersells your experience.   

5. Choose the right font.

Be sophisticated, not flashy. Choose a standard font that will be readable by the hiring manager on their phone, laptop, tablet, or any operating system. Your resume may be scanned by automated applicant tracking software, so using a basic font is probably best. Some common examples of “resume-safe” fonts are:
  • Calibri
  • Arial
  • Garamond
  • Georgia
  • Helvetica
Check out some more tips on choosing font size and weight from Indeed.  

6. Show that you are detail oriented. 

Typos and other errors are one of the most common blunders that would cause a hiring manager to discard a resume. Submitting a resume that has typos only confirms that your attention to detail is lacking. Don’t be that person. Just like your credit score can reflect your attention to detail in your personal finances as you seek out student loans or to refinance student loans, your resume is that short summary of your professional experience. Don’t let a typo drop your score with your future employer.   

7. Why you? 

Most importantly you want to make an impact on a hiring manager. You need to put emphasis on your accomplishments. Think of instances where you achieved success at previous jobs, on classroom projects, or during extracurricular activities. Your goal is to demonstrate measurable successes to the greatest extent possible. Maybe you were you able to help a previous employer increase revenue by 10%. Or you created marketing campaigns in your college courses that five actual companies were able to use and implement. Or you organized a fundraising event that raised funds for a charity in your community. For some inspiration, here’s JobScan’s list of examples of accomplishments you can put on your resume.  

8. Algorithms are everywhere.

Many employers use electronic databases to store applicant resumes, and scanning tools are programmed to look for key terms in your resume. Using the right keywords may help you get noticed and earn an interview. Use the job posting or description to help you determine which keywords, such as specialized degrees, languages, skills, etc, to include on your resume. We hope this Adulting Tip lets helps you score that next big career move. Education Loan Finance is here to help you along your financial journey from funding your college career to refinancing student loans – we want to empower your path to financial freedom.   Terms and conditions apply. Subject to credit approval.   NOTICE: Third Party Web Sites Education Loan Finance by SouthEast Bank is not responsible for and has no control over the subject matter, content, information, or graphics of the websites that have links here. The portal and news features are being provided by an outside source – The bank is not responsible for the content. Please contact us with any concerns or comments.
2019-08-14
New Ideas for Business Recruitment

Have you been noticing that your recruitment strategy may be somewhat behind the times? Still using traditional ways to fill your vacancies, such as newspaper ads, college recruiting, job fairs, and the same old job board? Although these recruiting channels will produce some hires, there are much more effective ways to find the best talent for your company. Here are some recruitment strategies that you might want to consider going forward.   

Improve Your Employer Brand

Your employer branding is your business’s reputation as a place to work. It’s the way your company is perceived by your employees, not your customers. This is perhaps the most important element to consider if you want to attract, hire, and retain great talent. First-class
employer branding is not easy to achieve because it requires significant investments of both time and money in your employees. However, it’s important to realize that today’s job seekers are not just looking for high salaries. They want a stimulating work environment and a great company culture.   

Make Use of Data

There is a business maxim that says you can’t manage what you don’t measure – and when it comes to recruiting, there’s a lot to measure, including: candidate response rate; application completion rate; qualified candidate rate; time to hire; cost of hire; and more. Using these metrics, you can learn what’s going well and what needs to be improved.   

Ditch CV Hiring

It takes a lot of time to read through hundreds of resumes and cover letters, and many applicants will have inflated their qualifications and experience. Instead, make it super easy for a candidate to apply online and then give them a short skills test or a series of tests. Software is available that will automatically pre-qualify candidates as they apply via the test.   

Use Niche Job Boards

You have to sink your recruiting line into the right pond to catch good fish. Niche job boards specialize in specific fields. You’ll get fewer candidates than with larger, more general websites, but the candidates may be better qualified for your niche job.   

Encourage an Employee Referral Program

Instead of searching through hundreds of applicants via job boards, you can recruit your own employees to do some searching for you. A referred employee is often a better quality hire because the person who has referred them has a good understanding of what qualities are needed to fill the vacancy. You should offer a reward if an employee brings someone great to your team. This incentive could be in the form of cash or extra days off.  
  • Host a Meetup - Another way to involve your current employees in the recruiting process is to host a meetup or get involved in a networking event that’s already been organized. Send out some representatives from your company and let them spread the good word about working for you. Include some free merchandise to give out to attendees. 
 

Don’t Overlook Passive Candidates

If you don’t hire a top candidate quickly, they will be gone from the job market fast as another company snaps them up. However, the good news is that there is no shortage of passive candidates (i.e., people who aren’t actively looking for a new job). According to research, 85% of global employees would be happy to change their position for a better opportunity. Your mission as a recruiter is to get into your target audience’s line of sight via whatever means possible.   

Reach Out to Previous Employees

Rehiring someone who has worked for you before may be a good idea. A prior employee may be the perfect candidate for a different role or a new role higher up the ladder. Look for past employees who have acquired new skills and gained work experience while working for other companies. You can benefit from the training and experience gained while they were away.  

Don’t Forget the Perks

Although perks might not be top of the list for someone considering the employer branding of your company, perks do show that you care about your employees. Here are a few suggestions.  
  • Raising salaries once or twice a year when goals are met.
  • Offering a significant number of paid vacation days.
  • Opportunities to work remotely from home.
  • Provision of a free laptop to take home. 
  • Offering retreats every year. 
  • Payment for gym or other sports club memberships.
  • Reimbursement for new glasses or contact lenses. 
  • Free e-books on any work-related subject. 
  • Bring your dog to work day.
 

ELFI for Business Program

Our innovative program can help your company recruit and retain top talent. One feature of this program is a student loan solution for your employees. A high level of student debt is a big concern for young professionals. In fact, an ASA survey found that 86% of them are prepared to commit to a company for five years in return for some assistance in paying off their student loans. Click here for more information.    Improved recruitment practices lead to better quality hires, shorter time to hire, shorter onboarding, lower turnover rates, and less recruiting expenses. Contact us to learn more on how we can help you recruit and retain employees through the ELFI for Business Program!     NOTICE: Third Party Web Sites Education Loan Finance by SouthEast Bank is not responsible for and has no control over the subject matter, content, information, or graphics of the websites that have links here. The portal and news features are being provided by an outside source – The bank is not responsible for the content. Please contact us with any concerns or comments.