While money and status used to be the golden ticket to employee retention, modern employees are less unanimously motivated by such things, Daniel Goleman writes in an article on finews.first.
finews.first is a forum for authors to comment on economic and financial topics.
Analyzing the job histories of more than 1.2 million people from 2019 to 2022, a study found that within a month after their first promotion, 29 percent of people had quit their company. Had they not been promoted, only 18 percent would have left. This means that over three years, promotion led to a nearly two-thirds increase in the risk of an employee departing from their workplace.
While money and status used to be the golden ticket to employee retention, modern employees are less unanimously motivated by such things. Instead, intrinsic motivation has become paramount. Rather than focusing on rewards and outcomes, leaders are being asked to zero in on the things employees find inherently satisfying – the things that light them up from the inside, out.
«Employees might be better off taking a lattice approach»
One of these things is learning – not just formally through coursework and education, but informally through experiential opportunities and mentorship. As Korn Ferry recently highlighted, the future of promotions and pay increases isn’t as stable as it once was.
Instead of focusing on moving up the career ladder, employees might be better off taking a «lattice approach» – looking for roles they can take on at their level or lower that provide them with critical growth, skill development, networking and exposure to mentors that can ultimately boost their career. «The old way of thinking about getting a promotion every year or two is antiquated,» says Dan Kaplan, senior client partner for Korn Ferry.
One of the ways for employees to embrace the lattice approach is to focus on work they love. This means reflecting on their strengths, interests, values and what energizes them. Then employees can use that information to consider how they can more meaningfully plug into the organization.
«The trend we see among Gen Z is a microcosm of the broader changes in the talent market»
This approach not only draws on decades of research on intrinsic motivation but also is congruent with the trends leaders are seeing among Gen Z, the newest addition to the workforce. LinkedIn says that Gen Zers are their fastest-growing user demographic, accounting for nearly 22% of the networking site’s online activity.
Leveraging their technical know-how and creativity, Gen Zers are building their networks, connecting with mentors, and experimenting with diverse career paths, all while exposing themselves to a diverse array of organizational cultures. At the same time, they are champions of purposeful work – vetting jobs, leaders, and opportunities in terms of how well they align with their values around advancing environmental and societal well-being.
The trend we see among Gen Z is a microcosm of the broader changes in the talent market. Not only are these young workers more likely to abandon college plans to enter the job market early, but they also are incredibly resourceful at building their career paths.
«More important than promotions and pay is to appeal to people’s deeper needs»
For leaders, this affirms that titles and traditional accolades won’t be enough to secure the employees of the future. More important than promotions and pay is to appeal to people’s deeper needs around learning and purpose.
In neuroscience terms, we can call this appealing to the brain’s seeking system – the neural pathways that hard-wire us for curiosity and meaning. While money might rule the world in some ways, we are wired to want more.
Daniel Goleman is the author of the best-selling «Emotional Intelligence», as well as many other works in emotional and social intelligence, leadership, and education. He is also a psychologist, former science journalist for the «New York Times», and co-director of the Consortium for Research on Emotional Intelligence in Organizations. This article has originally been published in Korn Ferry's newsletter «This Week in Leadership».
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