The latest Annual Salary and Employment Report by people2people Recruitment has highlighted why employees quit their jobs in 2023. The report is based on the insights of more than 1,050 employers across Australia, New Zealand, and the United Kingdom. It includes information on why employees recently quit or are considering quitting.

According to the report, lack of career opportunities is the biggest driver of employee turnover, with 46% of respondents citing it as a reason for leaving their job, up a staggering 29% from 2022. This was followed by low pay (35%), management (28%), non-supportive culture (27%), and stressful working conditions (26%).

The uncertain business landscape in 2023 makes talent attraction and retention essential to ensure organizations continue to perform in the current market and remain in a solid position to navigate high market volatility, according to people2people Recruitment’s Group Managing Director Mark Smith.

To address employee retention challenges, employers must consider critical findings from people2people’s report and Microsoft Work Trend research ‘Hybrid Work is just work.’ The report shows that Diversity, Equity and Inclusion, and mental health, have increased in importance by 30% in the last three years.

The report also found that employees would be seven times less likely to look for a new job if there is clarity on their work priorities. Additionally, 66% of employees would stay longer if it was easier to change jobs internally, rising to 77% for decision-makers.

According to Mark Smith, providing flexibility for employees to pursue their side projects is another way to increase work satisfaction, engagement, and retention in 2023, especially for the younger demographic.

The report also highlights the top five areas where employers can improve their retention strategies, which include offering flexible work arrangements (71%), increased base pay (59%), increased variable pay (56%), and additional training and development (42%).

Interestingly, the review of the employer value proposition decreased significantly, while the desire for regular well-being employee surveys and increased annual leave was on par, said Mark Smith.

Employers can use the insights from people2people’s annual salary and employment report to create effective retention strategies that meet the changing needs of employees.

Written by: Jill Walsh

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