Doing a Sideway-Shuffle
Train people well enough so they can leave.
Treat them well enough so they don’t want to.
- Sir Richard Branson
This statement by Sir Branson is a well-known quote, especially when discussing employee wellness or company culture in general. At first glance it seems rather simple and straight forward, but this statement does raise a question: HOW do you treat employees in such a way that they do not want to leave?
A recent article published in the MIT Sloan Management Review provided a rather interesting opinion. The default reaction that companies employee when trying to retain employees is to offer a promotion. New job title, more money, more benefits (hopefully) and more responsibilities. Because that is what employees want, right? Apparently not any more. It seems that a large number of employees would rather prefer moving to a new job on the same level instead of accepting a promotion.
This may seem a bit strange at first, especially considering that a lateral movement usually does not include a pay raise. However, taking into consideration what has happened over the last couple of years, it seems a bit more logical that employees may prefer a lateral movement. The Covid-pandemic with its associated lockdown regulations, juggling family and working from home, mental health battles and ongoing struggles for social justice are only some of the issues currently weighing on people. Taken from this perspective it comes as little surprise that people are opting to not accept more work that will consume more of their time, even if that should come with more money. Another growing trend among employees is to have a side-hustle or passion project, which may already be taking up a large portion their free time. Having more of their time taken away may therefore not be a feasible option for them.
Where a promotion may mean less time at home or with the family, a lateral movement still offers the challenge of a new job but without the accompanying time away from home. It may be a job within a completely new field, or a similar position at a different location — be it a local or international move. This offers the added benefit of a change of scenery while still working for the same company. A promotion usually keeps an employee within the same sector with the same responsibilities (together with a few new ones), whereas a lateral move offers the excitement of a new sector and the chance for the employee to grow their knowledge base and skill set. Put differently, a lateral move represents a chance to broaden horizons, rather than staying within the same space with more stress.
Just to be clear, a lateral move and more money does not have to be mutually exclusive. A pay increase may still be negotiated along with a new job. This may either be a small annual increase or a performance based increase measured over time. Offering other benefits such as flexible working hours, a more stable schedule or even more company sponsored social events may also be considered along with a lateral move. Granted, company sponsored social events are more of a company/department wide benefit, it can form part of the negotiations.
It has been stated many times that the Covid-pandemic has changed many aspects of the business world. One such thing is people reconsidering their priorities. Money is not the only — or most important — motivating factor. So when considering employee retention, consider different possibilities and do not automatically default to offering promotions.
