Expert: Higher pay doesn’t mean employee will stay

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WELLS COUNTY, Ind. (WANE) — The job market is heating up, and it’s not hard to find businesses looking to hire. This is causing employees to leave and is making it challenging for employers to find new recruits.

“This is happening not only in the northeast but across the nation,” said Michael Kirchner, professor of organizational leadership at Purdue University Fort Wayne. “Employers are facing this struggle of not only recruiting but also how do we do a better job of retaining them?”

After more than a year with COVID-19, employers are finding that good help is hard to find, and keeping the help is even harder.

“Employers have a responsibility to consider the needs of our candidates of our employees,” Kirchner said. “We know that keeping and retaining employee cost an awful lot less than trying to continue and find new employees to fill those positions.”

So how do businesses keep and retain employees? Kirchner says its a balancing act.

Not only is it important to hire the right employee for the right position, but it’s also important that employees feel needed and are socialized within the company. Raising worker’s pay doesn’t always keep them from leaving.

“Raising pay is often the fallback where we automatedly assume that if we pay them more they will be more interested in coming here,” Kirchner said. “But through research, we know it’s not money that drives turnover. People don’t leave their jobs primarily for higher pay. We leave our jobs because we don’t feel supported. We don’t feel like there are opportunities to develop ourselves professionally, to advance.”

Kirchner talks how to build a resume that will land you a job in this WANE 15 web exclusive:

Want to here more about how to retain employees?

Kirchner will be one of to speakers at an upcoming event held at the Wells County Arts, Commerce & Visitors Centre. The event will bring human resource professionals from Wells and Adams County together to have a conversation on what the best practices are about hiring and selecting employees.

The event will take place on June 9 at noon. Tickets for the event are $10. Organizers ask that you RSVP by June 4. To learn more about the event click here.

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