LONDON, December 6, 2007 - There is a significant mismatch between companies' perceptions of why people change jobs and the reasons employees actually give for doing so, according to a European-wide study by leading global consulting firm Watson Wyatt.
Watson Wyatt's Strategic Rewards report finds that a large number of companies across Europe see career development opportunities, their company’s reputation and the level of base pay offered as the leading reasons new employees look to join them. But the top reasons given by employees are the nature of the work, job security and base pay.
When it comes to retention, the mismatch of employer and employee perceptions continues. Employers focus on career development opportunities, promotion opportunities and base pay as the ways to stop employees quitting. Employees rank increasing stress levels, uncompetitive base pay and the lack of promotion opportunities.
“Companies appear to be putting far more emphasis on long-term career planning than employees are themselves,” said Carole Hathaway, European head of strategic reward at Watson Wyatt. “The priorities of many employees are rather more prosaic – the nature of the job, pay, stress and commuting. This is not to say employers are focused on the wrong things to attract and retain; career development and promotion opportunities are still rated as important by large numbers of employees. But employers need to increase their focus on more immediate needs as well, such as the nature of the work they do now, and the internal and external pressures that affect employees’ working experience, like stress and length of commute.”
| Rank | Employers | Employees |
| 1 | Career development opportunities (55 per cent) | Nature of work (49 per cent) |
| 2 | Employer reputation (51 per cent) | Job security (34 per cent) |
| 3 | Base pay (43 per cent) | Base pay (30 per cent) |
| 4 | Company culture (33 per cent) | Length of commute (29 per cent) |
| 5 | Nature of work (23 per cent) | Employer reputation (24 per cent) |
| Percentages reporting element as one of the top three reasons European employees consider joining an organisation | ||
| Rank | Employers | Employees |
| 1 | Career development opportunities (49 per cent) | Stress levels (35 per cent) |
| 2 | Promotion opportunities (48 per cent) | Base pay (34 per cent) |
| 3 | Base pay (43 per cent) | Promotion opportunities (27 per cent) |
| 4 | Relationship with manager (31 per cent) | Career development (25 per cent) |
| 5 | Work/life balance (28 per cent) | Work/life balance (20 per cent) |
| Percentages reporting element as one of the top three reasons European employees consider joining an organisation | ||
The European study involved 175 companies across France, Germany, Ireland, Italy, Spain and the United Kingdom. Similar studies were undertaken in North America and Asia, and results of the European study are broadly consistent with these.
Carole Hathaway
European Head of Strategic Reward
Watson Wyatt
+44 (0) 20 7598 2859
carole.hathaway@watsonwyatt.com
Bruce Wraight
Head of Public Relations, Europe
Watson Wyatt
+44 (0) 1737 273370
+44 (0) 7771 765154
bruce.wraight@watsonwyatt.com
Visit Watson Wyatt's online press office: www.watsonwyatt.com/europe/news/journalists.
Watson Wyatt (NYSE, NASDAQ: WW) is the trusted business partner to the world's leading organizations on people and financial issues. The firm’s global services include: managing the cost and effectiveness of employee benefit programs; developing attraction, retention and reward strategies; advising pension plan sponsors and other institutions on optimal investment strategies; providing strategic and financial advice to insurance and financial services companies; and delivering related technology, outsourcing and data services. Watson Wyatt has 7,000 associates in 31 countries and is located on the web at www.watsonwyatt.com.
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