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Employees in Czechia cite low pay as main cause for leaving

28 March 2024

Employees in Czechia point to better pay offers from competing employers as the main reason for leaving a company, according to a survey by Grafton Recruitment.

It comes as more than half of the companies are dealing with problems with increased turnover today.

According to the survey, companies offer a salary increase approximately 5% of the time when they learn of an employee's intention to leave.

In addition to salary being the main reason for employee turnover, workplace relationship,  the supervisor’s behaviour also played a significant role in the decision to leave an employer.

Feedback was also cited as important. The survey found that lack of employee feedback can lead to frustration and a sense of uselessness among employees, and subsequently to the search for a new job in which they will feel useful. Career growth was also cited as a top reason, particularly among employees under 40.

Grafton added that a healthy turnover rate is generally considered to be 5-7%, but in Czechia it has been around 15% for a long time. It has now started to grow in more than half of the companies, which is why the fight against turnover became one of the main priorities of 49% of employers this year.

“When an employee decides to change (jobs), it does not necessarily mean that the risk of his departure cannot be averted. Practice shows that a number of cases can be solved with the help of appropriately chosen benefits, proper communication and other tools and methods, which usually entail lower financial costs than looking for a new person," said Jitka Kouba, marketing director of Grafton Recruitment.

Kouba added that for employers, it is worth considering whether to invest in an existing and well-functioning employee instead of spending money in recruiting and training a new employee. Kouba added that this investment could be either in the form of an increase in his salary, benefits or perhaps by offering professional development and growth.

“There is a need to work systematically and long-term on measures to reduce turnover. But apart from a competitive salary, what works best is when employers can make their people feel like they care. According to our experience, workers who feel the interest and helpfulness of their superiors are the most loyal," Kouba said.

Grafton added that 69% of companies try to regularly compare salaries with the competition and keep them at a comparable or higher level as part of the fight against high turnover. More than half of employers (57%) also support a team atmosphere through a variety of company meetings and team buildings, thereby strengthening employee loyalty. Meanwhile, 43% carry out satisfaction surveys and take steps toward improvement, based on the results. Moreover, 4 out of 10 companies also focus on the possibilities of professional growth and career development of their people.