How often have you heard senior management complain about the fact that MBA’s are not stable in their jobs? According to an estimate 50% of IIM graduates switch jobs within 18 months of graduation. Companies pay them inflated salaries; make investments in training, to finally lose them to their competitors before they could start getting the benefits.
Everybody wants to be successful in their careers. Nobody likes to switch jobs. Switching a job brings a lot uncertainty – new organisation, manager & colleagues; different work culture and new market and industry in some cases. Nobody can be certain that things will work out well in the new job.
So why do people switch jobs? Or, if we look at it from employers’ standpoint – what can they do increase employee satisfaction, retention, and engagement.
At iimjobs.com, we conducted a study to understand some of these issues. The survey was conducted on March 1 – 25, 2009 with over 1500 MBA’s with varied work experiences participating in the survey. Median age of the respondents was around 27 years.
Respondents valued opportunities for careers growth more than other parameters. The least important factor was job security and financial strength of their employers. This isn’t surprising given the fact that the sample comprised MBA’s from top 15 business schools in India. These are some of the most ambitious people you’ll get to meet. They want to rise and rise fast.
Compensation & Benefits emerged as another important parameter but, it wasn’t as important as learning and development opportunities. That’s a prudent choice I would say. Work – Life balance seemed to be almost as important as compensation & benefits. This was truer for women employees and those specializing in HR function.
We also collected a lot of qualitative feedback. Here are some quotes from respondents –
- The overall work culture of the organization and freedom of expression to employees in terms of approaching the higher management, HR and Dress codes.
- I think in current recession mode, it’s very important to gather key skills to further your career. Salary, company performance can take a back seat to this.
- I think the most critical element is a job profile that helps add the experience/skill set required to enable you to achieve your long-term career objectives.
- At the beginning of the career, learning is more important. Money and job security takes importance at a later stage (when you have family and have had a good foundation in the early stages of your career)
- A professional work culture that promotes initiative and encourages risk-taking by having a tolerance for failure is essential. Other critical factors are flexible working hours and global exposure.
- Need a politics free environment where the person is encouraged to share ideas & work freely with responsibility
What do you think? What do you value most in your employer?
Till next time