Managers quit over job security

Fear for job security is causing a growing number of managers to resign, new research has revealed.

The Chartered Management Institute’s (CMI) National Management Salary Survey revealed the labour turnover rate increased from 12.4% to 13.6% over the past year.

Restructuring and job insecurity was the biggest motivating factor for resignations, cited by nearly 54% of respondents. Over a third said a lack of career or training opportunities was behind the decision to resign.

Ruth Spellman, chief executive of the CMI, said: “With the latest figures showing that staff are prepared to run the risk of unemployment by jumping ship, questions must be asked about employee engagement levels in organisations up and down the country.

Spellman said organisations could no longer afford to use pay rises as the sole incentive for keeping staff, as evidence suggests it is no longer an employee’s main motivator.

She added: “Instead, employers must concentrate on building remuneration packages that incorporate earnings with development opportunities, offer flexible approaches to work and recognition of the need to better engage with staff.”

The survey also revealed that despite the high rate of unemployment, employers are struggling to recruit the right staff.

Some 46% of respondents said they had encountered trouble filling vacancies. A lack of specialist skills was cited as the reason by 77%.

© Crimson Business Ltd. 2010