Salary, the main factor in the dismissal of workers

Looking for more competitive wages is one of the first reasons why a worker decides to change jobs.

According to Michael Page’s study Central American Remuneration 202472% of talented people quit their jobs to find better pay.

In this regard, the company predicts that by 2024, organizations will continue to face a turnover rate of between 10% and 15% in the region.

“This is not a completely negative indicator. If something is undeniable, it is that we have to learn to live with the outflow of talent, because it brings dynamism to the team. job and refreshes business perspectives,” said Juliana Otálvaro, Michael Page’s senior managing director for Panama and Central America.

However, Otálvaro warns that what is dangerous is is the unwanted rotation, especially when it happens with key talents, because it can generate stagnation in the curve of growth, innovation and development of the company.

Another reason for giving up is career plans (38.1%), personal projects (32.5%) and work flexibility (29.8%).

According to the study, turnover in the legal, agribusiness, engineering, mining and oil and consumer goods sectors is low, with an average of 50% or more employees staying with companies for five or more years. Special mention should be made of the energy sector, where 100% of employees stay for 5 years or more.

The other side of the coin is the insurance sector where only 20% of employees stay in companies for up to 4 yearsfollowed by marketing with 14.3% of employees staying for 5 years or more, and the same happens in BPOs, call centers and shared service centers.

In this sense, the sector that worries the most about the departure of talent is the insurance sector, followed by manufacturing and the mass consumption sector as the top three on a list that includes call centers and service centers, retail, food and beverage, agribusiness, legal, technology and telecommunications and health care.

Otálvaro emphasizes that in a challenging economic environmentcompanies must adapt to employee expectations and improve their HR strategy to retain talent and increase productivity.

“Trends identified in our compensation study match results presented in Talent Trends 2023, where candidates prioritize salary, professional development and flexibility, reinforcing the importance of comprehensive strategies that go beyond salary,” Otálvaro said.

The study shows that companies should focus on three strategies: ssalary, career progression and flexibility to retain talent.

In terms of salaries, the study recommends that companies review frequently, giving preference
high value talent. They also confirm that it is important to recognize the importance of salary as a motivational element and keep it on par with seniority.