Preferential treatment of new hires is a leading cause of resignations, according to a survey conducted by LHH.

The research found that nearly half of employees have witnessed new hires receiving preferential treatment over the last 18 months.

Nearly half (45%) of employees have discovered a new hire is getting paid more than them, and 44 percent state their employer has advertised better benefits packages for new hires.

When employees were asked about the factors that contributed to their resignation, the top three reasons cited were:

  1. Finding out that new hires were receiving better benefits packages than them
  2. Finding out a new hire was being paid more than them
  3. Having to take time out due to burnout

Being denied flexible hours to accommodate last minute commitments (such as doctor appointments and childcare duties), and being contacted by colleagues out of hours were other reasons cited by employees.

 

What can employers do?

With the number of resignations increasing across the world, employee retention should be a top priority for employers.

In the UK, job vacancies reached an all-time high of 1.25 million between October and December 2021, stress LHH. There is an increasing pressure on business to both recruit and retain talent.

CEO of LHH UK and Ireland, JC Townend, says: “There are usually multiple reasons when an employee chooses to hand in their notice, and in some instances, this is not a negative reflection of their current employer, they may simply be ready to move onto new things.”

However, “there are some resignations that are preventable and usually borne out of frustration with an employer. Without listening to your people or addressing their frustrations, they can build up and one final tipping point can cause an employee to hand in their notice,” she adds.

Townend suggests that companies need to recognise the warning signs that talent could soon be walking out the door.

The steps she recommends taking to prevent this include “open and honest conversations about things like compensation and benefits, but also how people are coping generally with their level of work and responsibilities. The historic highs we’re seeing when it comes to job vacancies are not just a business challenge – they have a very real impact on the people who are picking up the extra work or putting in extra hours, in order to cover these gaps.”